×
You will be redirected back to your article in seconds

Magic Leap Raises $793.5 Million from Warner Bros., Alibaba, Others

Magic Leap, a secretive startup developing an augmented-reality system, announced $793.5 million in funding led by Alibaba Group with participation from Warner Bros. and other investors.

According to Magic Leap, the latest round values the company at $4.5 billion. The funding brings it to nearly $1.4 billion raised, after a $542 million round in 2014 led by Google.

Google and Qualcomm Ventures contributed to the latest round. New investors include Fidelity Management and Research Co., J.P. Morgan Investment Management, Morgan Stanley Investment Management, funds and accounts advised by T. Rowe Price and Wellington Management Co.

“Here at Magic Leap we are creating a new world where digital and physical realities seamlessly blend together to enable amazing new experiences,” Rony Abovitz, founder, president and CEO of Magic Leap, said in announcing the funding. “This investment will accelerate bringing our new Mixed Reality Lightfield experience to everyone.”

Magic Leap hasn’t announced when it expects to commercially launch its system, which is designed to layer virtual objects within a viewer’s field of vision. The startup’s high-profile backers clearly believe Magic Leap is on to something very big.

“We invest in forward-thinking, innovative companies like Magic Leap that are developing leading products and technologies,” Joe Tsai, Alibaba’s exec vice chairman, said in a statement. “We believe Alibaba can both provide support to and learn from such a partner, and we look forward to working with the Magic Leap team.”

Magic Leap’s other existing investors include Legendary Entertainment, KKR, Vulcan Capital, Kleiner Perkins Caufield & Byers, Andreessen Horowitz and Obvious Ventures. Allen & Co. LLC served as financial advisers to Magic Leap for the new funding.

Magic Leap, founded in 2011, is based in Dania Beach, Fla., with locations in Santa Cruz, Calif., Los Angeles, Mountain View, Calif., Seattle, Austin, the U.K., New Zealand and Israel.

Last summer, Rio Caraeff, former CEO of Vevo, joined Magic Leap as chief content officer.

Watch a demo of Magic Leap’s technology:

Popular on Variety

More Digital

  • Blockchain Mania

    AFM: Panel to Launch Blockchain Working Group for the Film Industry

    A group of film executives and tech industry entrepreneurs are to establish a working group seeking to plan how blockchain technology should be applied to the creative industries. The call will be made at the American Film Market on Tuesday in Santa Monica by Manuel Badel from Badel Media and Patrice Poujol from The Lumiere [...]

  • Magic Leap Raising Another Funding Round

    Magic Leap Is Raising Another Big Funding Round

    Augmented reality startup Magic Leap is raising even more money. The company is currently in the process of raising its Series E round of funding, a spokesperson told Variety on Monday. Magic Leap previously raised around $2.6 billion, including $280 million from NTT Docomo in April. “Magic Leap is in the midst of a significant [...]

  • hearst logo

    Hearst Magazines Unionizes With Writers Guild of America East

    The Writers Guild of America East has scored a major victory by unionizing Hearst Magazines’ editorial, video, design, photo and social staff across 24 digital and print brands. The New York-based WGA East, which has about 6,000 members in film, television, news and digital media, announced on Monday that a strong majority of the 500-member [...]

  • Apple AR Headset Coming in 2022:

    Apple Said to Prep AR Headset for 2022

    Apple’s augmented reality (AR) headset won’t be arriving on store shelves until at least 2022, according to a new The Information report. The iPhone maker reportedly updated a large number of employees about the project last month, filling the spacious Steve Jobs Theater on its Cupertino, Calif. campus with employees working on AR hardware. Apple [...]

  • Variety Launches New Video Series, 'Daily

    Variety Launches New Video Series, 'Daily Variety'

    Variety has launched a daily video series covering the business of entertainment. Hosted by Audrey Cleo Yap and executive produced by Eva Wong, “Daily Variety” will feature breaking news coverage and analysis from Variety’s award-winning staff as well as in-depth features and interviews with top industry professionals. Each bite-sized segment and featured clip will be [...]

  • Pluto: Vevo Stations Launching on Ad-Supported

    Channeling MTV, Vevo Launches Linear Programming on Pluto

    Music television is back: Major label-owned music video platform Vevo is launching a series of linear channels for leanback viewing on Pluto TV, the ad-supported video service that got acquired by Viacom earlier this year. A first channel, dubbed Vevo Pop, will launch on November 12; additional channels, including a holiday-themed station, are expected to [...]

  • Instagram tests hiding likes

    Instagram Will Begin Hiding Likes in the U.S.: Smart Move or Misguided Fail?

    Instagram is about to launch a test of removing like counts from posts in the U.S. — and, predictably, the idea has been met with a range of reactions ranging from praise and support to concern and mockery. The hope is that the change can reduce anxiety among Instagram users, to make social media less [...]

More From Our Brands

Access exclusive content