(News Bulletin 247) – The Financial Times reported on Thursday that the parent company of Facebook and Instagram was considering investing in the Franco-Italian optics group. The two companies already collaborate on smart glasses.

Essilorluxottica shares experienced a sudden surge on Thursday. The stock jumped suddenly around 2 p.m., gaining up to 7.2% before moderating its rise slightly to 5.6% around 3 p.m.

The sudden move came on the heels of a report in the Financial Times . The newspaper reported that Meta, the parent company of Facebook and Instagram, was considering a multi-billion euro stake in Essilorluxottica, citing sources familiar with the matter.

Given that the market capitalisation of the Franco-Italian optics specialist and owner of the Ray-Ban brand is around 90 billion euros, a simple minority stake could amount to several billion euros.

Meta is reportedly working with Morgan Stanley on the potential stake, the British daily writes. Contacted by the Financial Times, Meta, Essilorluxottica and Morgan Stanley declined to comment. A spokeswoman for Essilorluxottica also told News Bulletin 247 that the company did not wish to comment on the information.

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A collaboration that is apparently fruitful

Meta and Essilorluxottica are already collaborating together and have launched a range of “smart glasses” called “Ray-Ban/Meta”, the most recent models of which incorporate artificial intelligence features. The success of this product has reportedly prompted the two companies to hold discussions to deepen their collaboration, explains the Financial Times.

UBS bank noted in a note published last month that consumer interest in the “Ray-Ban/Meta” range, measured by trends on the Google search engine, had steadily increased in recent months.

When it released its last quarterly results in April, Mark Zuckerberg told analysts that “it now seems clear that there is a significant market for fashionable, screenless AI glasses.”

“Glasses are the perfect device for an AI assistant because you can allow them to see what you see and hear what you hear, so they have full context about what’s going on around you while helping you do what you’re trying to do,” he also said.

By coincidence, the Financial Times’ information was published the day after Essilorluxottica announced a major acquisition, namely the streetwear brand Supreme, for $1.5 billion.

The proposed acquisition has left investors skeptical, with shares down 4.5% on Wednesday as Essilorluxottica moves out of its comfort zone with the potential acquisition. Its recent strategic initiatives have also focused not on streetwear but on childhood myopia and hearing aids.