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Bankruptcy Filing by 23andMe; Anne Wojcicki Steps Down as CEO
explicitly states that genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection, aiming to sell off its assets. Co-founder Anne Wojcicki, who intended to take 23andMe private, has stepped down and plans to bid for the assets.
Here's a lowdown on the situation:
In a press release, 23andMe revealed their initiative to file for bankruptcy in the Eastern District of Missouri federal bankruptcy court, hoping to expedite a sale process to maximize the company's value. The company's operation will continue as usual while the asset sale is in progress, with no changes to data storage, management, or protection.
The asset sale process will include a 45-day bidding period, after which, an auction may be conducted if multiple bidders emerge. Any potential buyer will have to comply with all applicable laws regarding customer data protection.
Anne Wojcicki, the co-founder, stepped down from her role as CEO, effective immediately, but she'll continue as a member of 23andMe's board. Wojcicki had partnered with New Mountain Capital last month to make a bid to purchase all 23andMe shares for $2.53 per share, but the deal fell through when the investment firm withdrew. She subsequently offered a significantly lower bid of 41 cents per share, which was struck down by the company's independent directors before Wojcicki announced her exit as CEO, stating her intention to bid for the company as an independent buyer.
Cutting Corners:
23andMe went public after merging with a Special Purpose Acquisition Company in 2021, with Wojcicki becoming a billionaire. The company's share price plummeted by over 99% as it failed to turn a profit, and in 2023, a major data breach occurred, resulting in the theft of user data through a recycled password attack. The sensitive data was shared on hacker forums, with details about users' sex, birth year, genetic ancestry results, geographic ancestry information, and more, being accessed. The company agreed to pay a $30 million settlement and provide three years of security monitoring for impacted users following the breach.
To keep your ear to the ground:
- 23andMe special committee again rejects CEO Wojcicki's take-private offer (CNBC)
- 23andMe Users Must Reset Passwords After Data Theft Targeting Ashkenazi Jews (Forbes)
- Anne Wojcicki, co-founder of genetic testing company 23andMe, has stepped down and plans to bid for the assets following the company's Chapter 11 bankruptcy filing, despite a previous unsuccessful attempt to take the company private.
- Hackers gained access to sensitive user data on 23andMe, including details about users' sex, birth year, genetic ancestry results, and geographic ancestry information, following a major data breach in 2023, which resulted in a $30 million settlement and three years of security monitoring for impacted users.
- To stay informed about the latest developments, one can follow updates on Anne Wojcicki's intentions to purchase 23andMe assets and the progress of the asset sale process on her LinkedIn profile or by visiting news outlets such as CNBC and Forbes.
