23andMe directors resign as the CEO of the genetic-testing company seeks
to take it private
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 [September 20, 2024] By
WYATTE GRANTHAM-PHILIPS
NEW YORK (AP) — All of 23andMe's independent directors
resigned from its board this week, a rare move that marks the latest
challenge for the genetic-testing company.
The resignations follow drawn-out negotiations with 23andMe CEO and
co-founder Anne Wojcicki, who wants to take the company private. In a
Tuesday letter addressed to Wojcicki, the seven directors said they had
yet to receive a “a fully financed, fully diligenced, actionable
proposal that is in the best interests of the non-affiliated
shareholders” from the chief executive after months of efforts.
The directors said they would be resigning effective immediately —
arguing that, while they still believed in 23andMe's mission, their
departures were for the best due to Wojcicki’s concentrated voting power
and a “clear” difference of opinion on the company's future.
Wojcicki later responded to the resignations in a memo to employees,
published in a securities filing, saying she was “surprised and
disappointed” by the directors' decision. Still, she maintained that
taking 23andMe private and “outside of the short term pressures of the
public markets” would be best for the company long term.
Wojcicki added that 23andMe would immediately be identifying independent
directors to join the board. Wojcicki, who holds 49% of the voting power
at 23andMe, was the only remaining board member listed on the company's
website as of Thursday. A spokesperson had no further updates to share
when reached by The Associated Press.
23andMe, which went public in 2021, has struggled to find
a profitable business model since. The company reported a net loss of
$667 million for its last fiscal year, more than double the loss of $312
million for the year prior.
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23andMe CEO Anne Wojcicki speaks at an announcement for the
Breakthrough Prize in Life Sciences at Genentech Hall on UCSF's
Mission Bay campus in San Francisco, Feb. 20 2013. (AP Photo/Jeff
Chiu, File)
 Shares for 23andMe
have also plummeted — with the company's stock closing at 33 cents
Thursday, down more than 97% since its 2021 stock market debut,
according to FactSet.
Wojcicki announced her intention to take 23andMe private, by way of
acquiring all outstanding shares that she doesn't own, in April.
Wojcicki also said that she wished to maintain control of the
company and was not willing to support alternative transactions from
other bidders. She submitted a proposal in late July, but the
board’s evaluating committee found it to be wanting.
Beyond the resignations, 23andMe has made other a handful of other
headlines in recent months — particularly around privacy concerns.
Last week, 23andMe agreed to pay $30 million in cash to settle a
class-action lawsuit accusing the company of failing to protect
customers whose personal information was exposed in a 2023 data
breach.
23andMe has shared preliminary support of the settlement, which is
set to be heard by a judge for approval next month. In a statement,
a spokesperson said that the company looked forward to finalizing
the agreement, which it believe is “in the best interest of 23andMe
customers.” The $30 million payment would settle all U.S. claims,
the spokesperson added, and $25 million of it is expected to be
covered by insurance coverage.
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