Meta in talks to buy a near $5 billion stake in Ray-Ban sunglasses parent: WSJ

By Tomi Kilgore

Meta's stock bounces, after tumbling nearly 14% amid a 5-day losing streak

Meta Platforms Inc. is in talks to pay nearly $5 billion for a 5% stake in France-based eyeglass giant EssilorLuxottica SA, which sells brands including Ray-Ban, Oakley and Oliver Peoples, according to a report in The Wall Street Journal.

Meta's stock (META) bounced 2.2% in morning trading Thursday, after tumbling 13.6% amid a five-day losing streak amid a broad and sharp selloff in the technology sector.

EssilorLuxottica's U.S.-listed shares (ESLOY) (FR:EL) surged 4.6%, after closing the previous session at a five-month low.

Meta has already partnered with EssilorLuxottica to make Ray-Ban smart glasses, which are powered by Meta's artificial-intelligence technology.

The WSJ report, which cites people familiar with the matter, said Meta's talks to buy the stake, which could be valued at 4.5 billion euros, based on EssilorLuxottica's market capitalization, are continuing and may not result in a deal.

By buying an EssilorLuxottica stake, Meta is looking to build on the success of the Ray-Ban Meta partnership and build more devices together, the WSJ report said.

In April, Meta Chief Executive Mark Zuckerberg had said on the post-earnings call with analysts that there was a "meaningful market" for fashionable AI glasses.

"Glasses are the ideal device for an AI assistant because you can let them see what you see and hear what you hear," Zuckerberg said, according to a FactSet transcript.

"Ray-Ban Meta glasses that we built with Essilor Luxottica continue to do well and are sold out in many styles and colors," Zuckerberg said. "So, we're working to make more and release additional styles as quickly as we can."

Meta and EssilorLuxottica have not immediately responded to requests for comment.

The report comes a day after EssilorLuxottica and Vans-parent V.F. Corp. announced an agreement in which EssilorLuxoticca will buy the Supreme brand business from VF for $1.5 billion.

Meta's stock has run up 33.4% year to date, while EssilorLuxottica shares have tacked on 8% and the S&P 500 index SPX has advanced 17.4%.

-Tomi Kilgore

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07-18-24 0950ET

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