Augmented reality headset manufacturer Magic Leap has struggled with the laws of physics and failed to hit the markets. Now it’s seeking a buyer, but discussions with Facebook and medical goods large Johnson & Johnson led nowhere according to a new report.
After raising more than $2 billion and being valued between $6 billion and $8 billion back when it nonetheless had momentum. Magic Leap could fetch over $10 billion if it pursues a sale based on the sources.
Startups have been getting their valuations cut when they go public. The whole economy is hurting because of COVID-19. Augmented Reality appears less interesting than virtual reality with people avoiding public locations. Getting people to strap used AR hardware on their faces for demos seems like a tricky sell for the foreseeable future.
Nobody has proven a killer consumer use case for augmented reality eyewear that warrants an expensive and awkward-to-wear gadget.
Today’s smartphones can already deliver plenty of AR’s value while a user clicks selfies and do a video call that headsets can’t.
Apple and Facebook are throwing the profits of iPhones and the News Feed into developing a better shopper headset. Snapchat has built intermediary glasses since CEO Evan Spiegel thinks it will be a decade before AR headsets become ubiquitous. AR competitors like Microsoft have better enterprise experience and distribution. Enterprise AR startup Daqri crashed and burned.