Snap Seeks $1B Funding to Spin Off AR Glasses Unit Amid Market Challenges
Snap Inc. (SNAP), the parent company of Snapchat, is in advanced discussions to raise at least $1 billion to bolster its augmented reality (AR) glasses division. CEO Evan Spiegel has engaged with investors, including Saudi Arabia’s Public Investment Fund (PIF), though no final agreements have been reached. The proposed spinoff of its AR hardware unit, Specs, mirrors Alphabet’s structure with Waymo, aiming to attract external capital while maintaining operational independence.
Prince Al Waleed bin Talal Al Saud recently expanded his stake in Snap to 2.8%, acquiring 15.2 million additional shares. His total holdings now exceed $321 million. Despite this vote of confidence, Snap faces headwinds as Stifel downgraded the stock to Sell, citing market share erosion and potential ad revenue slowdowns.
