23andMe CEO Anne Wojcicki Reaffirms Commitment to Taking Company Private Following Board Resignations

Departure of Independent Directors Signals a New Chapter as 23andMe Faces Financial Challenges and Strategic Shifts

Anne Wojcicki, co-founder and CEO of 23andMe Holding Co., has reaffirmed her dedication to taking the genetic testing company private after a wave of resignations by its independent board members. In a memo to employees, Wojcicki stressed that stepping away from the public markets would enable the company to better pursue its long-term objectives, offering more flexibility to achieve its mission without the constraints and scrutiny of being publicly traded.

Wojcicki’s announcement follows the departure of all seven of the company’s independent directors, including Roelof Botha, a notable Sequoia Capital partner who has served on prominent boards such as Block Inc. and Unity Software Inc. With their resignations, Wojcicki remains the sole board member, holding both CEO and chair positions. She indicated that a search for new independent directors will begin soon.

The resignations stem from dissatisfaction with Wojcicki’s proposal in July to take 23andMe private at 40 cents per share—a plan that independent board members found insufficient. A special committee formed to evaluate the offer concluded in August that it was not prepared to advance the proposal, citing its lack of premium over the current share price and the absence of financing commitments.

In a letter to Wojcicki, the board’s independent members noted that despite several months of deliberation, they had not received a fully financed or actionable offer that would fairly benefit non-affiliated shareholders. Their frustration with the lack of progress led to the resignations, which took immediate effect.

The departures highlight the broader struggles faced by 23andMe since its 2021 public listing via a special purpose acquisition company (SPAC) merger led by billionaire Richard Branson. At its debut, 23andMe was valued at $3.5 billion, but a significant slowdown in the sales of its DNA testing kits, coupled with challenges in its transition to a subscription-based model, has left the company struggling. As of Tuesday, 23andMe’s stock closed at 34 cents per share, marking a 63% decline this year and giving the company a market value of just $173 million.

Wojcicki’s renewed push to take the company private reflects her belief that shedding the pressures of public markets will allow 23andMe to regain momentum and focus on its mission. However, with independent board members departing and investors expressing concerns about the financial viability of the offer, it remains to be seen how the company will navigate this turbulent period.

For now, the future of 23andMe lies in Wojcicki’s hands as she looks to restructure the board and steer the company through these challenges.