Biotechnology company 23andMe has filed for bankruptcy, with co-founder and CEO Anne Wojcicki stepping down, effective immediately.
On Sunday, 23andMe filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Missouri. According to a press release, it "intends to continue operating its business in the ordinary course throughout the sale process," with "no changes to the way the company stores, manages, or protects customer data."
The DNA testing company said it would use the money from the sale to "resolve all outstanding legal liabilities stemming from the previously disclosed October 2023 cyber incident." The company agreed to pay a $30 million settlement over a massive data breach that affected 6.9 million users in October 2023.
Once valued at $6 billion, 23andMe lost 98 percent of its value in October 2024, with all independent board members resigning in September.
23andMe also announced that CEO Wojcicki had resigned, with the company saying the decision was "by mutual agreement between Ms. Wojcicki and the Special Committee" of the Board of Directors. Wojcicki posted on X that she was "disappointed" by the outcome — the CEO's bid to take 23andMe private was rejected in early March 2025.
"While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder." she wrote. "I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder."
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Wojcicki has been replaced in the interim by chief financial and accounting officer Joe Selsavage.
So, what's next? 23andMe have filed for the U.S. Bankruptcy Court to allow the company to sell off all its assets over a 45-day process in which it would solicit bidders, after which 23andMe would conduct an auction. "Any buyer will be required to comply with applicable law with respect to the treatment of customer data and any transaction will be subject to customary regulatory approvals," the company said in its announcement.
23andMe announced plans in November 2024 to lay off about 40 percent of its employees as part of a restructuring program, as well as discontinuing further development of its testing technology. For the remaining employees, 23andMe said it has "filed customary motions with the Court seeking a variety of 'first-day' relief, including the authority to pay employee wages and benefits and compensate certain vendors and suppliers on a go-forward basis."
"After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business," said Mark Jensen, chair and Special Committee member, in a press statement. Jensen also said 23andMe was "committed to continuing to safeguard customer data...and data privacy will be an important consideration in any potential transaction."
Topics Cybersecurity
