Snap Inc. Chief Executive Officer Evan Spiegel said he’s set on transforming his social media company — not selling it — after a tumultuous year in which the stock has plummeted 76%.
(Bloomberg) — Snap Inc. Chief Executive Officer Evan Spiegel said he’s set on transforming his social media company — not selling it — after a tumultuous year in which the stock has plummeted 76%.
“So far, Bobby and I believe that the best way to realize our potential is by building an independent company,” Spiegel said at Vox Media’s Code Conference on Wednesday, when asked about whether he’d consider selling Snap, owner of the photo-sharing and messaging app Snapchat. Spiegel and Bobby Murphy, Snap’s co-founder and technology chief, hold more than 99.5% of voting rights.
Snap is in the throes of a restructuring that includes a shift of its priorities. Last week, the company said it laid off 20% of its workers, canceled or scaled back a number of buzzy projects, lost its chief business officer to Netflix Inc. and reorganized the advertising sales department. The CEO’s goal is to narrow the focus of the business to expanding its community, improving the ad business and developing its augmented reality offerings.
“When I look at the long-term opportunity for the business, I really believe it’s enormous,” he said. “We’re far from reaching our potential. We’ve really got to focus on executing.”
Spiegel specifically mentioned improving Snap’s direct-response advertising business, a key tool for marketers to reach customers with high purchasing intent. Marketers have spent less on the platform this year, dragging down revenue growth to the lowest levels since the company went public in 2017.
He’s also made it a priority for the company to look for opportunities to make money in areas like augmented reality. For example, Snap works with retailers to develop tools that let customers try on clothing virtually. Eventually, Snap could expand that into an “AR enterprise business,” charging a startup fee and small transaction fees to merchants using the technology, Spiegel said.
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