Mixed reality (MR) headset maker Magic Leap reportedly began discussing its future strategy with an unnamed adviser, with a full or partial sale among the options being considered, Bloomberg stated.
The news outlet explained the company commenced talks after consumer demand fell short of the anticipated level, which had resulted in Magic Leap refocusing on the healthcare sector. In addition to selling, the company may sell some parts of its business, which Bloomberg noted could net it more than $10 billion.
Magic Leap was established in 2011 and had raised investment of more than $2.3 billion by April 2019 from big names including NTT Docomo, Google and Alibaba.
Bloomberg speculated Johnson & Johnson as a potential acquirer, but stated Facebook, which offers Oculus VR headsets, had already declined to pursue a deal following talks with Magic Leap.
US operator AT&T partnered with Magic Leap in 2018, becoming the only operator in the country to offer its AR headset at its launch.
Last month, Magic Leap detailed a series of moves to attract more app developers to its platform, including a priority publishing programme; projects for companies building “custom applications for enterprise customers or brands”; and an updated funding scheme.
The company noted its previous grant programme, offered in 2018, had delivered funding of $10 million to 33 developers globally.Subscribe to our daily newsletter Back