Synopsis
Snap CEO Evan Spiegel is pushing back on investor calls to cut its augmented-reality glasses unit. The company launched its new AR glasses, called Specs, at $2,195. Spiegel stated Snap is committed to its long-term vision and independence. He indicated more details on partnerships will be shared later this year. The unit was made a standalone subsidiary in January.Listen to this article in summarized format
The Snapchat parent launched the device, its first consumer AR glasses, on Tuesday at a price of $2,195 and pitched them as the future of how people interact with technology in the AI age.
The launch comes months after Irenic Capital Management pushed Snap to consider options for Specs as part of a series of changes that the activist investor said could boost the social media company's worth by at least five times.
Irenic has argued Specs should be funded on its own, noting Snap has already spent more than $3.5 billion on the unit.
"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 said in an interview.
"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," he said.
Spiegel said the company is expected to share "more later this year in terms of how we're thinking about partnerships over a longer period of time."
The company carved out the unit as a standalone subsidiary in January, a structure that could let it raise outside funding.
