23andMe's Troubled Path: Board Resignation and Takeover Attempt

23andMe, the renowned genetic testing company, is facing a major upheaval as seven independent directors of its board resigned. This move comes shortly after a data breach settlement and a plummeting stock price, leaving the company in turmoil.

• The resigning directors, including YouTube CEO Neal Mohan and Sequoia VC Roelof Botha, expressed their disagreement with CEO Anne Wojcicki's strategy to take the company private.
• They criticized Wojcicki for not submitting a "fully financed, fully diligenced, actionable proposal" and asserted a difference in strategic vision.

Wojcicki's Attempt to Take 23andMe Private

Anne Wojcicki, the co-founder of 23andMe and its controlling shareholder, had proposed taking the company private in July. She offered $0.40 per share for the outstanding shares, but her proposal was rejected by a special committee appointed by the company.

• Wojcicki, who holds a majority of the voting power, remains determined to take the company private, believing it will be beneficial for 23andMe's long-term success.
• However, the board's resignation highlights the lack of consensus on this strategy and raises concerns about the future direction of 23andMe.

23andMe's Data Breach and Stock Price Decline

The recent resignations are just the latest setback for 23andMe, which has faced a number of challenges in recent months.

• A major data breach in October affected nearly 7 million accounts, leading to a class action lawsuit. 23andMe subsequently proposed a $30 million settlement.
• The company's stock price has plummeted since its IPO in 2021, currently trading at 34 cents per share. 23andMe needs to raise its stock price to at least $1 per share by November to avoid being delisted.
• The data breach, the lawsuit, and the declining stock price have eroded investor confidence and cast a shadow over the future of 23andMe.

23andMe's Core Products and Business Strategy

23andMe offers a range of genetic testing products, including ancestry kits and health predisposition reports.

• Its core product is a $99 ancestry kit that provides customers with insights into their genetic background.
• The company also offers a $199 kit that includes health predisposition reports, providing information about potential risks for various conditions.

23andMe's Future: Uncertain and Filled with Challenges

The resignations of seven independent board members have raised questions about 23andMe's future direction and its ability to overcome its current challenges.

• Wojcicki's attempt to take the company private is a bold move, but it remains to be seen whether it will be successful in addressing the company's financial and strategic issues.
• The company faces a crucial deadline in November to raise its stock price or risk being delisted.
• 23andMe must also work to rebuild trust with customers and investors following the data breach.