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23andMe CEO Anne Wojcicki considers taking company private

Women's Tabloid News Desk
Women's Tabloid News Desk

CEO Anne Wojcicki is eyeing a significant move for 23andMe, the DNA-testing company she leads. Less than three years after its public debut, Wojcicki is considering taking the company private, according to a recent filing with the Securities and Exchange Commission.

In the filing, Wojcicki informed the board of her proposal to acquire the company in a potential go-private deal. She stated her intention to work with advisors and initiate discussions with potential partners and financing sources.

Maintaining control of the company is a priority for Wojcicki, as indicated in the filing. With 49.99% of 23andMe’s voting power under her control, she expressed reluctance to support any alternative transaction.

This potential move comes amidst a challenging period for 23andMe. Once valued at approximately $6 billion, the company’s market cap has dwindled to around $188 million. Despite a successful public debut in June 2021, with its stock soaring 21% on the first trading day, the company has faced a decline in consumer demand for its DNA-testing kits.

Efforts to pivot towards telehealth and new-drug development have yet to yield significant results. Compounding these challenges, a data breach in December compromised personal information of approximately 6.9 million customers, further eroding trust and confidence in the company.

Financially, 23andMe has struggled, with fiscal third-quarter sales plummeting by 33%, leading to a reduction in full-year revenue guidance. The stock has plummeted by 96% over the past three years, with an 83% decline in the past 12 months.

In light of these difficulties, Wojcicki’s proposal to take 23andMe private marks a potential turning point for the company. However, challenges lie ahead, including the need to navigate financing and partnership discussions, amidst Nasdaq’s looming threat of delisting if the stock price fails to rise above $1 by early May.

Wojcicki’s vision for 23andMe’s future, whether public or private, remains to be seen. Nonetheless, her leadership and determination will play a crucial role in shaping the company’s trajectory in the coming months.

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