Genetic testing pioneer 23andMe filed for Chapter 11 bankruptcy on Sunday, marking a dramatic fall from its $6 billion valuation just a few years ago. The move comes after a series of financial setbacks, a major data breach, and a sharp decline in consumer interest in DNA testing services.
The bankruptcy filing is intended to facilitate a court-supervised sale of the company’s assets and maximize value for stakeholders. As part of the restructuring, co-founder Anne Wojcicki has stepped down as CEO but plans to participate in the bidding process to regain control of the company. Her previous bids to buy up company stock while retaining her seat as CEO were rejected in recent months.
“While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder,” she wrote on X. “I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder.”
The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have…
— Anne Wojcicki (@annewoj23) March 24, 2025
Joe Selsavage, the current chief financial officer, has taken over as interim CEO.
The company’s financial troubles have deepened over the past year, with stock prices plummeting more than 80% and its market capitalization dropping below $50 million. Once priced at $320 in 2021, shares now trade at under $1. A 27% decline in revenue and the company’s inability to convert one-time test buyers into long-term subscribers have further weakened its business model.
Additionally, 23andMe has laid off 40% of its workforce in 2024 alone.
Learn more about the all-new VT News and subscribe today!
Central to the company’s unraveling was a massive data breach in 2023 that compromised the personal and genetic information of nearly 7 million users. The breach has sparked class-action lawsuits and raised widespread privacy concerns. While 23andMe has pledged to continue operations and maintain customer access to services during the sale process—with $35 million in financing secured for this purpose—trust in the company has eroded.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Mark Jensen, Chair and member of the Special Committee of the Board of Directors wrote in a statement. “We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”
“We want to thank our employees for their dedication to 23andMe’s mission,” he added. “We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”
California Attorney General Rob Bonta has urged the company’s 15 million users to delete their genetic profiles, warning that sensitive DNA data could be sold off to data brokers during the restructuring.
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” Bonta said in a statement. “Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”
However, 23andMe has vowed that “there are no changes to the way the company stores, manages or protects customer data,” assuring privacy advocates that personal data will not be sold off.
A 45-day bidding window is now open as the company searches for potential buyers. The outcome will determine the future of one of the most high-profile names in consumer genomics—and the fate of millions of users’ most personal data. Per the company, “any buyer will be required to comply with applicable law with respect to the treatment of customer data.”
Connor Walcott is the lead writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
Got a hot scoop or an idea for a story? Connect with the VT writers on Minnect!
Add comment