Some businesses are destined for greatness, but longevity and success haven’t been coded into 23andMe’s DNA. Since going public in 2021, the genetic testing company’s valuation has plummeted from a high of $6B to just $178M — a staggering 98% drop. Now trading at pennies, CEO Anne Wojcicki aims to take the company private, but her buyout plan has hit roadblocks.
- In August, the board rejected Wojcicki’s offer to buy out the company at $0.40 per share, providing no premium to shareholders.
- Then, on Tuesday, all seven board members resigned, citing worries over the lack of a clear future strategy and calling for a more “actionable proposal.”
Privacy concerns: With 23andMe now valued at less than its cash on hand, its $178M market cap raises worries about a potential competing buyout that could hand over the genetic data of millions of Americans to new leadership. However, Wojcicki, who controls 49% of voting power, will have the final say on any alternate offers. This has led to questions about whether her privatization plan serves shareholders or primarily benefits herself.
