23andMe Buyback Bid: Anne Wojcicki makes a bold move to take the DNA firm private with a $75M offer. The company was targeted for a buyback by her for $75 million. Once valued at $6 billion, 23andMe is now eyed in the 23andMe Buyback Bid. New Mountain Capital was partnered with by Wojcicki to take it private.
They offered shares at $2.53 each, setting an equity value of $74.7 million. The board and minority shareholders must approve the proposal. Fortune noted that investors will likely raise red flags.
“We think going private is best,” Wojcicki and New Mountain wrote. The 23andMe Buyback Bid focuses on long-term goals. She sent the letter to independent directors in late February and holds 49 percent voting power.
She hand-picked the current board last September, replacing seven independent directors who resigned together. Expert Charles Elson flagged a “conflict of interest” to Fortune.
Turmoil at 23andMe
23andMe cut 40 percent of its staff in November 2024, slashing costs amid ongoing struggles. “Tough but necessary steps must be taken,” Wojcicki said. The 23andMe Buyback Bid follows a rough patch.
The company faced a major data breach earlier. It also implemented multiple layoffs before. Last fiscal year, losses reached $667 million. That figure doubled from $312 million the year before.
23andMe went public in 2021 but has struggled to find a profitable model. The challenge stems from reliance on one-time kit purchases.
Source: Independent
