Overview
- Snap shares climbed about 12% to 14% Tuesday after Irenic Capital disclosed a roughly 2.5% economic stake and publicly urged major changes.
- Irenic’s plan calls for cutting about 1,000 jobs using artificial intelligence, spinning off or shutting the Specs augmented‑reality glasses unit, and expanding share buybacks.
- The activist set a goal of roughly $26.37 per share, implying a market value near $35 billion, far above Wall Street’s average target near $7.90 reported in recent coverage.
- Snap’s board, led by Chairman Michael Lynton, said it welcomes investor input and highlighted ongoing efforts to boost free cash flow and execute a previously authorized $500 million repurchase.
- The push follows years of stock underperformance and heavy spending on AR hardware, and any headcount cuts on the scale proposed would directly affect employee roles and pay structures.