Snap CEO Spiegel defends Spectacles as long-term bet, pushes back against activist pressure

Snap CEO Evan Spiegel is pushing back against activist investor demands, asserting that the company's new augmented-reality Spectacles are integral to its long-term strategy. The Snapchat parent company launched the consumer AR glasses on Tuesday for $2,195, envisioning them as the future of human interaction with technology in the age of AI.

The launch comes amid pressure from activist investor Irenic Capital Management, which urged Snap to consider spinning off or shutting down the cash-burning Spectacles unit. Irenic has argued that the unit, which has reportedly consumed over $3.5 billion, should be independently funded.

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While investors may want more short-term profitability, our job at Snap is to drive long-term profitability and the long-term success of the company.

"While investors may want more short-term profitability, our job at Snap is to drive long-term profitability and the long-term success of the company," Spiegel told Reuters in an interview. He reiterated Snap's long-standing commitment to its vision, which includes remaining an independent entity rather than selling the company.

Spiegel also indicated that Snap plans to share more details later this year regarding its long-term partnership strategies. The company established the Spectacles unit as a standalone subsidiary in January, a move that could facilitate its ability to secure outside funding.

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One of the things we've always been clear about as we've built Snap... was that we were committed to our long-term vision. And that includes staying independent rather than selling the company.