Activist investment firm Randian Capital issued an open letter to the Snap Inc. Board of Directors. The firm demands a strategic review of the Specs Inc. hardware subsidiary to enhance shareholder value.
Randian Capital also calls for a review of board composition and an analysis of potential index inclusion. Additionally, the letter requests an independent review of former President Donald Trump’s Snapchat account.
The firm claims the market assigns negative value to the loss-making Specs division. Randian Capital proposes selling Specs Inc. to CEO Evan Spiegel in exchange for a contingent value right tied to future revenues.
The activist investor acknowledged recent workforce reductions as positive steps. However, the firm maintains that more significant structural changes are required to achieve profitable growth.