Irenic Capital Management has taken an activist position in Snap Inc, urging the social media company to implement a series of strategic, operational and governance changes aimed at improving performance and shareholder value, according to a report by Bloomberg.
The hedge fund, which holds an economic interest of roughly 2.5% in Snap’s Class A shares, outlined its proposals in a letter to chief executive and co-founder Evan Spiegel. Irenic believes the company’s stock could exceed $26 per share if reforms are executed.
Snap’s shares rallied following news of the stake, though the stock remains significantly lower year-to-date, reflecting ongoing investor concerns around growth and execution.
A central focus of Irenic’s recommendations is Snap’s investment in its smart glasses division, Specs. The fund argued the business should either be separated or required to operate independently, noting the scale of capital already committed. Snap has previously indicated plans to house the unit in a standalone subsidiary.
The activist investor is also calling for tighter cost controls, including workforce reductions and revisions to employee compensation structures. In addition, it has suggested share repurchases to take advantage of what it views as a depressed valuation.
On the revenue side, Irenic is encouraging Snap to accelerate the use of artificial intelligence to enhance advertising efficiency, pointing to improvements achieved by industry peers.
Corporate governance reform is another key demand. Irenic is advocating for equal voting rights for Class A shareholders, which would modestly increase public investor influence while still leaving control with founders Evan Spiegel and Bobby Murphy.
Snap’s chair, Michael Lynton, said the company remains open to shareholder feedback and is focused on improving profitability, strengthening cash flow and maintaining disciplined investment in long-term initiatives.
The activist campaign comes at a challenging time for Snap. The company has faced user growth pressures, regulatory scrutiny in Europe related to child safety, and broader legal challenges affecting the social media sector.
Founded in 2011 and listed in 2017, Snap has been working to diversify its business model beyond its core messaging platform. Initiatives include subscription services, AI partnerships and continued development of augmented reality hardware, an area Spiegel has championed for years.
