Following a monthslong battle over CEO Anne Wojcicki’s plans to take 23andMe private, all seven independent members of its board resigned en masse in September 2024.
In their letter, however, the board members wrote,
“After months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders.”
“We believe the Special Committee and the Board have provided ample time for you to submit such a proposal. That we have not seen any notable progress over the last 5 months leads us to believe no such proposal is forthcoming,”
the letter continued, adding that there would be no further extensions to revise such a proposal.
The directors, who largely did not support the plan to take the company private, said it “is clear that we differ on the strategic direction for the Company going forward” and said they thought it was in the best interests of the company and its shareholders to resign, “rather than have a protracted and distracting difference of view with you as to the direction of the Company.”
While originally hosting eight members, all seven of its independent directors left the board, as its chair and co-founder, Ann Wojcicki, remains adamant about taking the company private. According to The Hill, Wojcicki submitted a proposal in late July to stop the public trade of the company’s shares. Wojcicki initially expressed interest in doing so in April.
Shares of 23andMe are now worth pennies. The company’s valuation has plummeted 99% from its $6 billion peak shortly after the company went public in 2021.
What will 23andMe do with the DNA data of 15 million customers?
Andy Kill, a spokesperson for 23andMe, would not comment on what the company might do with its trove of genetic data beyond general pronouncements about its commitment to privacy.
“For our customers, our focus continues to be on transparency and choice over how they want their data to be managed,”
he said.
The kits got a lot of celebrity buzz, including placement one year on Oprah’s “Favorite Things.” For about $100 or so, you could get a test tube in the mail, fill it with spit, send it back and wait for your personalized report.
In her memo to staff this week, Wojcicki reiterated her commitment to taking 23andMe private, saying
“we will be better positioned to achieve our mission and goals outside of the short term pressures of the public markets.”
She said the company would “immediately” look for replacements on the board, which currently consists only of Wojcicki.
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