The personal genomics company, 23andMe, went public in early 2021 through a merger with a blank check company that valued it at $3.5 billion. However, its fortunes started to decline afterwards. One reason was that people were becoming less interested in buying DNA kits, which are the main product of 23andMe. Another reason was the news that hackers had stolen ancestry data from 6.9 million users.
CEO and co-founder Anne Wojcicki now reportedly wants to make the 18-year-old company private. After her proposal to buy the company was rejected by its board in July, she was given the opportunity to come up with another deal. However, the independent directors announced on Tuesday evening that they no longer believe she will come up with a new proposal. Due to Wojcicki’s strong voting power, they have decided to end their involvement with the company immediately.
The company’s market cap closed the day at $173 million. Losing its prestigious board, which included prominent figures like Sequoia Capital’s Roelof Botha and YouTube CEO Neal Mohan, among others, is likely to cause a further decrease in its share value. There is also a possibility that a shareholder lawsuit could be filed.
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