AR startup Magic Leap is trying to explore various strategic options, including a sale, with companies such as Facebook and Johnson & Johnson, according to Bloomberg.
Bloomberg reports that according to anonymous sources, the AR startup is now “exploring options including a sale” and considering “strategic options that could also include forming a partnership or selling a significant stake ahead of a potential listing.” Bloomberg’s sources feel Magic Leap “could fetch more than $10 billion if it pursues a sale.” Magic Leap has reportedly been gauging interest from companies such as Johnson & Johnson and Facebook. However, “an initial meeting between Facebook and Magic Leap never progressed to deal talks” and Facebook is reportedly not currently interested in a Magic Leap acquisition.
The report from Bloomberg comes after Magic Leap pivoted to focus on the enterprise market. After lower-than-expected sales on the Magic Leap 1, the company is still a ways away from a true successor in the Magic Leap 2, which is said to be targeted for 2021.
Magic Leap Founder and CEO Rony Abovitz set high expectations for the Magic Leap 1 — initially the ‘Magic Leap One Creator Edition’ before being renamed. He hoped it would sell more than 1 million units in its first year, according to a report last year from The Information. The headset sold just 6,000 units in the first six months, according to the report.
In other Magic Leap news, the company is looking to host a series of developers days at their headquarters in Florida in May. However, given the many recent event cancellations related to the COVID-19 outbreak, we’d guess there’s a fair chance we could see a similar fate befall the Magic Leap dev days as well.
