Investor Urges Snap to Raise Outside Capital for Specs
Blue Duck Capital Partners has written to Snap’s board urging it to sell approximately 20% of its Specs subsidiary at a $5 billion valuation, raising $1 billion to fund roughly two years of spending without diluting Snap shareholders. This comes two weeks before the augmented reality glasses go on sale in the United States, Britain, and France.
October 6, 2026 - 3:46 pm
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Blue Duck Capital Partners argues that Snap is "profoundly" undervalued, and selling a portion of Specs would be a strategic move. They suggest potential investors could be venture capitalists or even a strategic partner like SpaceX. Failing to act, they warn, will lead to a "deeply depressed share value, which limits strategic optionality."
This is the second fund to press Snap regarding Specs. Earlier this year, Irenic Capital Management advocated for spinning off or shutting down the business, citing over $3.5 billion invested with little self-funding capability.
Neither fund has the power to compel a decision as Snap's structure gives public shareholders no voting rights.
As previously mentioned, Specs are expected to cost $2,195 and ship this autumn in three countries, including France, where regulations around recording devices have already proven stringent. Meta’s glasses now stop recording when covered, and Paris prosecutors have initiated a criminal investigation into smart glasses used for filming without consent.
Retailers are also acting swiftly; Hans Anders removed Meta's Ray-Bans from Dutch and Belgian stores on Monday, Wehkamp paused sales, and the Dutch data protection authority is considering further actions.
Blue Duck’s proposal comes with a significant valuation and regulatory backdrop, raising questions about its feasibility and urgency.