23andMe Sale to Anne Wojcicki Approved After Judge Rejects California's Delay Request

23andMe founder Anne Wojcicki can proceed with a $305 million sale of the genetic testing company to her new non-profit TTAM Research after a US bankruptcy judge rejected California's attempt to delay the sale due to privacy concerns. The judge ruled that California customers can delete their accounts and data at any time, and the sale does not violate California's Genetic Information Privacy Act. Wojcicki's non-profit has promised to protect customers' genetic data and maintain 23andMe's privacy policies.

A U.S. bankruptcy judge has approved the sale of 23andMe to Anne Wojcicki's non-profit TTAM Research, valuing the deal at $305 million. The acquisition, which includes 23andMe's signature "personal genomics services" and its subsidiary Lemonaid Health, follows a contentious bidding war and multiple legal challenges [1].

The sale comes after 23andMe filed for Chapter 11 bankruptcy in March, citing a drop-off in consumer demand and a significant data breach in 2023. The bankruptcy court approved the sale despite objections from several states, including California, which argued that the transfer of genetic data violated their privacy laws [2][3].

Wojcicki, who stepped down as CEO during the bankruptcy process but remains on the board, has long advocated for privatizing 23andMe. Her non-profit, TTAM Research, aims to empower individuals with choice and transparency regarding their genetic data. The acquisition includes provisions for customers to opt out of research or delete their data permanently [4].

The sale replaces a previous bid from Regeneron Pharmaceuticals, which offered $256 million for the company. TTAM Research's higher bid, secured in June, won the auction [1]. Despite the legal challenges, the bankruptcy judge ruled that California customers could delete their data at any time, effectively addressing the state's privacy concerns [4].

The acquisition marks a significant milestone for 23andMe, which was founded in 2006 and has around 15 million customers. The company collects saliva-based DNA samples to provide ancestry and health information. TTAM Research has promised to maintain 23andMe's privacy policies and safeguard customer data [2].

References:
[1] https://www.gurufocus.com/news/2955521/anne-wojcickis-ttam-to-acquire-23andme-mehcq-after-court-approval
[2] https://san.com/cc/23andme-sale-comes-with-privacy-concerns/
[3] https://www.mobihealthnews.com/news/judge-approves-23andme-sale-amid-privacy-dispute
[4] https://www.investing.com/news/stock-market-news/california-fails-to-stop-23andme-founder-from-reacquiring-company-4125534