23andMe Ends Third-Party Takeover Bids – Filing

Investing.com — The Chief Executive Officer of 23andMe, Anne Wojcicki, has dismissed the potential for third-party takeover offers for the DNA testing company, as reported in a regulatory filing on Monday.

Wojcicki stated that she believes “the best path forward” involves taking the company private, expressing her commitment to completing an acquisition of 23andMe.

This announcement follows the resignation of all seven independent directors from the company’s board last month, which was linked to a stalled management buyout proposal from Wojcicki earlier this year. The resigning directors indicated that they had not received a satisfactory offer for taking the company private that would serve the interests of non-affiliated shareholders.

Wojcicki’s proposal, presented in July, aimed to take 23andMe private and involved acquiring all shares owned by external parties at a price of $0.40 per share.

Initially, Wojcicki had indicated her willingness to evaluate outside bids during the assessment of the deal.

23andMe, renowned for its comprehensive genetic testing services that provide users with ancestry insights, went public through a merger with a blank check company backed by Richard Branson in 2021.

At the time of its listing, the company held a valuation of $4.5 billion; however, its market capitalization has since diminished to just over $206 million due to challenges in achieving previously set revenue goals.

In the latest fiscal year, 23andMe’s consumer division generated $220 million in revenue, significantly below the expectations established at the time of going public.

Additionally, the company reported a loss before interest, taxes, depreciation, and amortization of $176 million for the 2024 financial year, following a loss of $161 million in the preceding year.