Magic Leap Inc., the startup that raised more than $2 billionto build an augmented-reality device, is exploring options including a sale, according to people familiar with the matter.
The Plantation, Florida-based company is working with an adviser to consider strategic options that could also include forming a partnership or selling a significant stake ahead of a potential listing, said the people. Magic Leap could fetch more than $10 billion if it pursues a sale, the people said, asking not to be identified because the information is private.
AR Competition
In addition to Facebook, Microsoft Corp. and Amazon.com Inc. have all been investing in augmented reality with their own divisions, said Jitendra Waral, a Bloomberg Intelligence senior analyst. AR hardware may be limited to enterprise uses for the next several years, he said.
For Magic Leap, the valuation of the company will be a question mark because suitors may have to take a long-term bet without substantial near-term revenue, Waral said. The scalability of the company’s technology could also be an issue, he added.
Led by Chief Executive Officer Rony Abovitz, Magic Leap has raised about $2.6 billion from investors and is valued at $6 billion to $8 billion, making it one of the most well-funded tech startups in the U.S. as it built a headset that could project digital objects onto the real world.
See the full story here: https://www.bloomberg.com/news/articles/2020-03-11/augmented-reality-startup-magic-leap-is-said-to-explore-a-sale