23andMe Reopens Bankruptcy Auction With $305 Million Bid

23andMe, a prominent genetic analysis company, has initiated a second auction for its vast collection of DNA data. The auction begins with an opening bid of $305 million from a consortium led by the company's former CEO, Anne Wojcicki. This development is a pivotal moment in 23andMe's ongoing bankruptcy proceedings, which have been unfolding for some time. The data up for auction includes over 15 million customer DNA profiles, amassed through 23andMe's widely-used direct-to-consumer saliva-testing kits. This genetic information holds immense value, as it can be utilized for various purposes, including medical research and personalized medicine.

The new auction follows an earlier plan to sell the company to Regeneron. However, Wojcicki's bid of $305 million, which surpasses the previous offer by nearly $50 million, has presented a formidable challenge to Regeneron's winning bid. This has prompted 23andMe to consider reopening its bankruptcy auction to entertain a final offer from a nonprofit entity operated by its co-founder. The substantial increase in the new offer underscores the high value attributed to the DNA data.

The decision to conduct a second auction is a strategic maneuver by 23andMe to optimize the value of its assets. The process will commence with a $305 million offer from Wojcicki's group, providing Regeneron with an opportunity to surpass that bid. Both potential buyers will incur a $10 million breakup fee if the deal does not materialize. This auction is a crucial juncture for 23andMe, as the outcome will shape the future of its valuable DNA data collection and the company's trajectory through bankruptcy.