Meta buys 3% stake in Ray-Ban maker EssilorLuxottica

Post by : Monika

Photo: Reuters

Meta, the tech company that owns Facebook, Instagram, and WhatsApp, has made a quiet but powerful move in the fashion and technology world. According to a reliable source, Meta has bought nearly 3% of EssilorLuxottica, the company that owns famous eyewear brands like Ray-Ban, Oakley, and Persol. This investment is believed to be worth around €2.3 billion, which is about $2.5 billion USD.

This decision is not just about money. It shows that Meta is serious about building the future of smart glasses, a kind of wearable technology that can let people take pictures, make phone calls, and even see digital information in real life.

Let’s understand what this deal means, why it matters, and how it could change the future of how we see — and interact with — the world.

Who Is EssilorLuxottica?
EssilorLuxottica is one of the biggest companies in the world of eyewear. It was formed in 2018 when two major companies — Essilor, a French lens maker, and Luxottica, an Italian frame maker — joined together. Luxottica was started by Leonardo Del Vecchio, a well-known businessman in Italy who became one of the richest people in Europe before he passed away.

This powerful company makes and sells both the lenses and the frames for many popular glasses. They own famous brands like:

• Ray-Ban
• Oakley
• Persol
• Vogue Eyewear
• Oliver Peoples

EssilorLuxottica also works with luxury fashion labels such as Chanel, Armani, and Prada to make stylish glasses under those brand names.

You can find their products in many retail stores around the world, like Sunglass Hut, LensCrafters, and Pearle Vision. This means they are involved in every step — from making lenses, designing frames, and selling to customers in shops.

Meta and EssilorLuxottica: An Ongoing Relationship
This is not the first time Meta and EssilorLuxottica have worked together. Back in 2021, the two companies teamed up to create Ray-Ban Stories — smart glasses that look like normal sunglasses but have tiny cameras, microphones, and speakers inside.

These glasses allowed users to take photos, record short videos, and even listen to music or take phone calls, all without pulling out their phone. It was Meta’s first big step into smart wearable devices.

The first version didn’t sell as well as expected, but Meta and EssilorLuxottica kept working on the project. In 2023, they launched the second version of the Ray-Ban Stories with improved features and better reviews from customers. Now, with Meta buying a share of the company, the partnership is becoming even stronger.

Why Did Meta Buy the Stake?
Meta’s decision to buy nearly 3% of EssilorLuxottica is a smart and calculated move. It shows that Meta wants to go beyond just being a partner and become a part-owner. Here are a few reasons why this matters:

1. More Control and Voice
By owning a part of EssilorLuxottica, Meta may get a chance to influence future plans, especially related to smart glasses. This gives them a seat at the table when important decisions are made.

2. Long-Term Partnership
This investment shows that Meta wants to work closely with EssilorLuxottica for many years to come. It’s not just a short-term deal but a long-term relationship that could shape the future of wearable technology.

3. Support for the Metaverse
Meta is spending billions of dollars to build the metaverse — a digital world where people can meet, work, and play using devices like VR headsets and smart glasses. Partnering with a top eyewear company like EssilorLuxottica can help Meta build better, more stylish devices for that future.

4. Moving Beyond Phones
Today, most people use smartphones to stay connected. But Meta wants to build new ways for people to interact — without needing a phone in their hand. Smart glasses could one day replace phones for certain tasks like taking photos, checking messages, or seeing directions in front of your eyes.

How Big Is the Investment?
While neither Meta nor EssilorLuxottica has made an official announcement, the source says the stake is worth around €2.3 billion ($2.5 billion USD). This makes Meta one of the largest shareholders in the company.

The investment was reportedly made with the knowledge and approval of Delfin, a holding company owned by Leonardo Del Vecchio’s family. Delfin still owns about 33% of EssilorLuxottica, so it remains the main decision-maker.

Experts say this was a friendly investment, not a hostile takeover. That means Meta bought the shares after talking to EssilorLuxottica, not behind their back.

What’s the Importance of Smart Glasses?
Smart glasses are a big part of Meta’s future plans. CEO Mark Zuckerberg believes that augmented reality (AR) and virtual reality (VR) will change how people connect and use the internet.

Smart glasses could become a common tool for everyday use — just like smartphones are today. These glasses can:

• Record short videos and take photos
• Let you hear phone calls or music
• Show you messages or directions
• Place digital objects into your real-world view

But making smart glasses is difficult. They need to be light, stylish, and comfortable while fitting in lots of tech like tiny cameras, speakers, batteries, and Bluetooth. That’s why teaming up with an expert eyewear maker like EssilorLuxottica is a big help for Meta.

Looking at the Future
So far, the Ray-Ban Stories haven’t become a must-have gadget. But both Meta and EssilorLuxottica are learning and making improvements. A third version of the smart glasses might be released soon with even better features.

Meta’s investment means the company is thinking long-term. While the metaverse idea may take years to become common, smart glasses are a real product today — and could slowly grow in popularity as they get better.

What Do Experts Say?
Market experts have mixed views about Meta’s move. Some believe it’s a smart idea because:

• Meta gains more control over a key product
• It brings Meta closer to top eyewear designers
• It shows Meta is serious about the future of AR
• However, others are more cautious:
• Smart glasses are still a niche product
• The $2.5 billion investment is risky
• Many people still prefer smartphones and smartwatches

Still, most agree this step shows how technology and fashion are merging like never before.

Meta’s decision to buy a 3% stake in EssilorLuxottica is more than just a business move. It’s a sign that the company is betting on a future where smart glasses play a big role in how we live, work, and connect.

By joining hands with one of the world’s top eyewear makers — not just as a partner but now as a part-owner — Meta is laying the groundwork for a world where we won’t need to pull out our phones to take a photo, check a message, or interact with digital content.

It’s still early days, but this investment could be the beginning of a big shift in how we use technology in our daily lives.