What you need to know
- Startup Magic Leap is looking to partner with other companies, exploring options up to an acquisition.
- The company has been looking at interested parties like Facebook and Johnson & Johnson.
- Facebook has reportedly shown little interest due to its own Oculus business and occupation with the coronavirus pandemic.
AR startup Magic Leap is looking at a few options, including partnering with another company or selling a large stake in its business.
According to Bloomberg who broke the story this week:
Magic Leap is estimated to fetch over $10 billion for its investors if a sale goes through, but issues have arisen in the process. Facebook has no interest in currently purchasing the company due to coronavirus supply chain-related issues and its own Oculus business which serves the same niche.
And AR, despite its cool factor, is very much a niche business at this point. Bloomberg Intelligence senior analyst, Jitendra Waral, said:
AR is a market in its infancy, and anyone who's thinking of snapping up Magic Leap should be ready to carry it to term.
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