23andMe’s Board Resigns as CEO’s Buyout Plan Falters
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.
