- The options studied by Magic Leap
- What is at stake for the startup
In a financial impasse, Magic Leap would consider several scenarios to get out of it, including a takeover of the startup.
According to a report, the company has approached candidates as diverse as Facebook or pharmaceutical giant Johnson & Johnson.
The options studied by Magic Leap
The takeover is not the only solution considered by the startup, but one of the strategic options at its disposal. According to an anonymous source cited by the American site, the executives of the company are also fondling the idea of a partnership.
They could also sell large shares of the company before a Initial Public Offering. In any case, if Magic Leap opts for an outright sale, the startup could ask for up to $ 10 billion according to Bloomberg.
However, if negotiations have taken place with Facebook, the social network is currently not interested through acquisition.
What is at stake for the startup
Fact, Magic Leap plays its survival after his commercial misadventures. Thus, its founder Rony Abovitz expected 1 million sold copies of its Magic Leap One mixed reality glasses in its first year of marketing. However, after 6 months at the merchants, only 6 units had found buyers. Despite this, Magic Leap 000 would be in preparation for a launch in 2. But in the meantime, the firm has repositioned its activities towards professional customers.
To this are added the catastrophic IPOs many tech companies in recent months. Thus, the stock market values of Uber, Slack and Peloton have fallen considerably since their appearances on the markets. We therefore understand the eagerness of the leaders of Magic Leap to find a taker.
Another bad news for the startup, Magic Leap may have to review the dates of its conferences for developers. Indeed, with thecoronavirus epidemic which is only just beginning in the United States, the event scheduled for Florida next May is unlikely to take place.