As Apple Inc. (NASDAQ:AAPL) reportedly rethinks its strategy for AR wearables, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is doubling down with a possible $115 million acquisition of eye-tracking startup AdHawk Microsystems.
What Happened: Google is in final talks to acquire AdHawk, a Canadian startup specializing in advanced eye-tracking hardware and software, reported Bloomberg on Tuesday, citing people with knowledge of the matter.
The reported deal includes $15 million in performance-based payments and is expected to close this week.
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Founded in 2017, AdHawk developed MindLink smart glasses and low-power components that can track eye movements.
AdHawk's staff is expected to join Google's Android XR team, the report noted. Google's team is already working on software for next-gen headsets, including a joint device with Samsung Electronics Co. (OTC:SSNLF).
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Why It's Important: The acquisition underscores Google's renewed focus on augmented reality. In 2023, the tech giant had halted the sales of its Google Enterprise smart glasses and discontinued software support.
Meanwhile, AdHawk has been available in the market for several years. In fact, in 2022, Meta Platforms, Inc. (NASDAQ:META) explored the possibility of acquiring it.
Apple is also said to be exploring a new design for lightweight glasses by 2030 after the Vision Pro's lukewarm reception.
Price Action: As of this writing, Alphabet's Class A shares rose 0.11% in after-hours trading to $164.23, while Class C shares climbed 0.096% to $166.14. Apple's stock closed Tuesday's regular session at $220.84, down 2.92%, but edged up 0.10% in after-hours trading, according to the data from Benzinga Pro.
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