Randian Capital, a retail-focused activist investor based in New York, has escalated its pressure on Snap Inc by issuing an open letter to Chief Executive Evan Spiegel that calls for immediate and forceful action to halt what the firm describes as prolonged value erosion.
The activist said it holds economic exposure to more than 160,000 Snap shares through a combination of common stock and options. Randian's demands track closely with a separate initiative from Irenic Capital Management, which on Tuesday unveiled a "Save Snap Now" campaign and disclosed a 2.5% economic stake in the company. While the two activist investors are not formally allied, their critiques overlap, particularly around elevated costs and what both describe as a governance vacuum at Snap's Santa Monica headquarters.
Spectacles separation and capital allocation
A central plank of Randian's proposal is the immediate separation of Spectacles, Snap's augmented reality hardware program. The activist estimates the unit has consumed roughly $3 billion in investment and argues the core Snap business should be allowed to stand alone financially. Randian wrote that Snap should "immediately separate Spectacles into an independent entity that is financed separately, allowing the core business to stand on its own merits."
The letter also targets Snap's spending profile. Randian highlights roughly $1 billion in annual stock-based compensation and a $1.6 billion research budget as examples of outlays it believes have contributed to what it calls a "sustained destruction of shareholder value," citing a lack of recent meaningful product enhancements and a share price decline of roughly 80% since the company's IPO.
Operational and governance changes
Randian's formal turnaround plan outlines a concentrated effort to boost operational efficiency. The proposal includes a directive to accelerate enterprise-wide deployment of artificial intelligence to enable a leaner operating model, an immediate review of the company's organizational footprint, and a renewed emphasis on total shareholder return as a primary corporate objective.
The activist requests that Snap hold a formal investor day to present a credible strategic path forward and recommends the appointment of two independent directors possessing founder-level experience. Randian stopped short of prescribing a single outcome if management cannot restore value, instead urging the board to "undertake a thorough review of strategic alternatives" should the company be unable to deliver as a public entity.
Dual-class stock structure under scrutiny
A persistent grievance articulated by Randian concerns Snap's multi-class share structure. Under this arrangement, founders Evan Spiegel and Bobby Murphy maintain full control of the company, while public shareholders lack voting power. Randian contends that this absence of shareholder governance has produced poor total returns and is encouraging the board to collapse the dual-class structure and return voting rights to public holders as a means of attracting a broader, more stable institutional investor base.
These governance-focused recommendations echo Irenic's argument that the current structure can prevent inclusion in major indices and increase the firm's cost of capital.
Coordination with retail investors and public outreach
Randian said it appreciates Irenic's initiative and called on management and the board to heed shareholders' demands for change. Drawing on its prior retail activism — including work around Opendoor Technologies, One Group Hospitality and DocuSign — Randian plans to marshal retail investors in support of its proposals. The firm announced it will host a "Snap Investor Town Hall" live on X on April 6 at 7 PM EST to outline its turnaround plan and rally retail participation.
"We believe retail investors need to make their voices heard to let Evan Spiegel know urgent and aggressive actions are needed to save the company," Randian said.
Randian has in the past been involved in retail-led campaigns and turnaround proposals for Opendoor Technologies Inc, One Group Hospitality Inc and DocuSign Inc, and it indicated it intends to use that background to organize small investors around the Snap plan.
Market reaction and next steps
Shares of Snap rose about 4% on Wednesday following the public disclosure of activist pressure, as some shareholders reacted to the prospect that a push for structural and cost-focused change could catalyze a recovery in the stock. Randian's letter and plan lay out specific steps it believes will return focus to profitability, capital discipline, and governance, while insisting that the board evaluate strategic alternatives if those measures cannot restore public-market value.
Note: The article summarizes the activists' public demands, the financial figures cited by Randian, its planned retail mobilization and the immediate market response, without projecting outcomes beyond the information presented by the activists and observed market moves.