Snap is the go-all with its augmented reality smart glasses if consumers want them or not. After the announcement the latest generation in its Spectacles line, came the news that Snap has agreed to acquire WaveOptics, which provides the AR display that runs its frames, for more than $ 500 million, the Verge reported on Friday.
In an emailed statement to Gizmodo, Snap confirmed that the deal was worth more than $ 500 million in cash and stock, with nearly half paid up first in stock. The remainder will be paid in cash or stock over the next two years.
WaveOptics primarily develops waveguides, the techy ones displayed inside AR glasses that make storing virtual real -world images possible, and the projectors that direct the light to said waveguides. . The fourth generation of Snap used WaveOptics lenses but are not sold in the majority of the current. However, Snap surrounded them with a select number of AR effect makers before they improved the technology.
This agreement is not exclusive, meaning that WaveOptics will continue to provide other companies with its waveguides as it works on traditional optical systems with Snap, a Snap spokesperson told The Verge. However, it is sure to give Snap a valuable foot in the start but rapidly growing market for AR headsets. Competitors such as Google and Facebook are reportedly making their own waveguide technology to power their AR frames. Apple has adopted the waveguide maker Akonia in 2018 for the long haul Apple Glass, which could be announced as soon as next year.
Snap CEO Evan Spiegel told CNBC on Friday that the company has partnered with WaveOptics for “several years” to develop waveguides for the line of smart glasses.
“It’s really sophisticated and intricate components,” he said. “This really represents a long -term investment in the future of Spectacles.”
Snap has been on a small buyout these past few days, with WaveOptics being fourth and quickly one of the most acquired so far this year. In March, it bought Compatible with Analytics, a firm-sizing analytics firm, for $ 124 million as part of an even greater push for e-commerce. Snap also scoops StreetCred in January and Pixel8Earth in April for their mapping tools to improve location -related services.
If it’s willing to invest $ 500 million in the future of Spectacles, Snap should have confidence that this latest version will be a success. Because the lord knew that was not the case with the last three. The first generation of Snap Spectacles is said to have cost the company $ 40 million in unsold inventory, with “Hundreds of thousands” in pairs left to collect dust in warehouses. Later the models excelled a little better but failed to grow for the most part, at least in part because so many came. price tags.
Maybe for the fourth time the beauty? Assurance is sure to be hopeful.