EssilorLuxottica stock climbs as Meta reportedly plans to buy 5% stake

Investing.com -- Meta Platforms Inc (NASDAQ:META ) is reportedly planning to invest €5 billion ($5.4 billion) in EssilorLuxottica SA (EPA:ESLX ) and acquire a 4-5% stake in the eyewear giant.

Citing sources familiar with the matter, BFM business reported Monday that talks over a potential Meta seat on EssilorLuxottica’s board are ongoing.

Shares in the Franco-Italian company rose more than 3% in European trading.

According to the report, the move comes as Meta CEO Mark Zuckerberg looks to consolidate the partnership between the two companies.

EssilorLuxottica announced in September that it has extended its partnership with Meta Platforms (NASDAQ:META ) through a new long-term agreement set to last into the next decade.

The press release did not mention any potential for Meta to buy a stake in the eyewear maker. In July, however, the company’s CEO noted that Meta had indicated interest in possibly investing in the company.

Previously, the Wall Street Journal reported that discussions had taken place regarding Meta potentially taking a 5% stake in the Franco-Italian group.

Since 2019, EssilorLuxottica and Meta have collaborated on developing Ray-Ban branded smart glasses, releasing two generations to date.

The initial launch of the smart glasses faced challenges in gaining consumer interest, but the latest version, released in late 2023, has outperformed the earlier models, achieving higher sales within a few months than the previous versions did over a two-year period.

The Ray-Ban Meta smart eyewear enables users to make calls, listen to music, and capture photos with a button on the right temple. In May, a multimodal AI feature was introduced for customers in the U.S. and Canada.

Source: Investing.com