Meta buys minority stake in eyewear giant EssilorLuxottica worth $3.5B

Meta Platforms (NASDAQ:META) has acquired a small non-controlling stake in eyewear holding company EssilorLuxottica (OTCPK:ESLOF) (OTCPK:ESLOY), according to a Bloomberg report on Tuesday citing sources.

American Depository Receipts of EssilorLuxottica rose 7% before the closing bell. Shares in rival Warby Parker (WRBY) also rose as much as 4.3% following the report.

The social media and tech giant has bought just under 3% equity worth $3.5B (€3B) in the Franco-Italian company, according to the report. Meta may also look at bumping its stake up to 5% over time, but those plans could change.

The move by the Facebook and Instagram parent comes as it bets big on smart wearables embedded with artificial intelligence, amid its broader efforts to transition into a leading AI company.

Following the widespread success with Ray-Ban AI glasses (over 2M units sold as of February since their debut in October 2023), the company introduced the Oakley Meta glasses last month to attract athletes and sports enthusiasts.

Apart from owning the Ray-Ban and Oakley brands, EssilorLuxottica, which is the world’s largest eyewear company, has licenses to make eyewear for luxury names like Dolce & Gabbana, Prada, Armani, and Versace, among others.