- Magic Leap, a much-hyped augmented reality startup, is considering a sale, Bloomberg reported on Wednesday.
- Magic Leap has raised more than $2.6 billion from investors including Google and Alibaba, and told Variety in December that it was in the process of raising additional money in a Series E round.
- Magic Leap is also exploring options including partnerships and a possible stock market listing, Bloomberg reports.
- As of March 2018, Magic Leap was burning about $50 million a month, Business Insider previously reported.
- Sales of the Magic Leap One headset, which projects digital imagery over the real world, have lagged behind the company's own expectations, according to a recent report in The Information.
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Magic Leap, an augmented reality startup that has raised more than $2.6 billion from investors, is exploring a potential sale, Bloomberg reported on Wednesday.
The report said that Magic Leap is exploring a range of options that include partnerships and a potential public listing, while hoping to fetch a valuation of around $10 billion if it ends up selling. Early talks with Facebook never developed into a formal sale process, Bloomberg reported.
Magic Leap has been able to secure extensive funding from major investors like Google and Alibaba, helping finance the research and development that led to the release in 2018 of the Magic Leap One — a pair of smart goggles that project digital imagery over the real world, much like Microsoft's pioneering HoloLens headset.
However, the race to bring its product to market led the company to burn through around $50 million per month as of March 2018, as first reported by Business Insider. In December, Magic Leap told Variety that it was in the process of seeking additional funding. Scott Henry stepped down as CFO last November, as first reported by Business Insider.
Meanwhile, the Magic Leap One headset has so far struggled to catch on with consumers, according to a recent report in The Information, with sales lagging behind the company's estimates.
Magic Leap declined to comment on this story.
Insider Inc.'s parent company, Axel Springer, is an investor in Magic Leap.
On February 28, Axel Springer, Business Insider's parent company, joined 31 other media groups and filed a $2.3 billion suit against Google in Dutch court, alleging losses suffered due to the company's advertising practices.
