23andMe independent board resigns in feud over CEO Anne Wojcicki’s plan to take company private
All seven of 23andMe’s independent board members resigned in a stinging rebuke to a proposal by CEO Anne Wojcicki’s plans to to take the company private.
Wojcicki, who has been trying to take the company private since April, proposed to acquire all outstanding shares of 23andMe not owned by her or her affiliates for $0.40 per share, in July.
“I am surprised and disappointed by the decision of the directors to resign,” Wojcicki said in a memo Tuesday to employees obtained by The Post.
Wojcicki added that her plan was the “best opportunity for long term success.”
The genetic testing company’s shares rose 2.6% on Wednesday.
The stock has plummeted 96.6% since 2021, when the company went public through a merger with English billionaire Richard Branson’s blank-check company VG Acquisition.
The company – which at one time was valued at $3.5 billion – has a market capitalization of $180.2 million.
The independent directors had rejected her plan in July because it didn’t provide a premium to the closing price at the time.
“After months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders,” the independent board members said in a letter addressed to “Anne” on Tuesday.
“We believe the Special Committee and the Board have provided ample time for you to submit such a proposal. That we have not seen any notable progress over the last 5 months leads us to believe no such proposal is forthcoming.”
Wojcicki co-founded 23andMe – known for its saliva DNA testing and digital ancestry tools – in 2006.
The board formed a special committee in late March to explore paths forward for the struggling company.
The independent board members – which included doctors, venture capitalists and YouTube CEO Neal Mohan – said it was “clear that we differ on the strategic direction for the Company going forward.”
23andMe and its DNA tests skyrocketed in popularity around 2018, but the company has faltered since.
Its business model does not often invite repeat customers – since one DNA test is all a person needs for their ancestry results.
It also has been rocked by scandal.
23andMe revealed a data breach – which included customers’ personal information – last year.
The breach took place over a five-month period before the company became aware of the hack.
The company confirmed the breach in October, but did not disclose the full extent of the hack until December.
More than 30 lawsuits were filed against the company over the breach.
On Monday, 23andMe agreed to pay a $30 million settlement for a class action suit that claimed the company failed to alert Chinese and Ashkenazi Jewish customers that the breach seemed to target their data in particular.
The suit alleged those customers’ data had been compiled into lists that were sold on the dark web.
