23andMe enters bankruptcy after failed takeover bids
23andMe secured $35 million in financing and will continue operating during the sale process.
Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection in the United States as part of efforts to sell the struggling business.
Co-founder and CEO Anne Wojcicki has resigned after multiple failed takeover attempts, with CFO Joe Selsavage stepping in as interim chief executive.
The company had previously cut 40% of its workforce and halted therapy development in a restructuring effort announced in November.
Wojcicki had been pushing for a buyout since April 2023 but faced repeated rejections from the board. Her most recent bid, valuing 23andMe at $11 million, was significantly lower than the company’s current $50 million market value.
Despite financial difficulties, the firm has secured a $35 million financing commitment and expects to continue operations during the sale process.
The company has faced mounting challenges, including a $30 million settlement for a 2023 data breach that exposed the personal information of 6.9 million customers.
With estimated liabilities between $100 million and $500 million, 23andMe’s future now depends on securing a buyer willing to salvage the once high-profile genetic testing firm.
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