Anne Wojcicki's $75M Bid to Revive 23andMe

Coin WorldSaturday, Mar 1, 2025 1:25 pm ET

1min read

In a dramatic turn of events, Anne Wojcicki, the CEO of 23andme, is attempting to buy back the company she founded for a mere $75 million. This is a stark contrast to the company's valuation six years ago, when it was worth a staggering $6 billion.

Wojcicki has joined forces with New Mountain Capital to propose a take-private deal, aiming to delist the company from the public market. This move comes as a surprise, given the company's once-lofty valuation and its status as a pioneer in the direct-to-consumer genetic testing industry.

The proposed deal values 23andMe at just $3.15 per share, a significant discount from its initial public offering (IPO) price of $19 per share in 2021. The company's stock price has been on a downward trajectory since its IPO, reflecting the challenges it has faced in the competitive consumer genetics market.

23andMe's struggles can be attributed to several factors, including increased competition from other genetic testing companies, regulatory hurdles, and a shift in consumer preferences towards more affordable and accessible genetic testing options. The company has also faced criticism for its data privacy practices and the potential misuse of customer genetic information.

Wojcicki's attempt to take the company private may be an effort to refocus 23andMe's strategy and address these challenges. By delisting the company, Wojcicki and New Mountain Capital can operate without the scrutiny and pressure of public market investors, allowing them to implement long-term strategies to turn the company around.

However, the proposed deal faces several hurdles, including the approval of 23andMe's shareholders and regulatory bodies. The company's board of directors will also play a crucial role in determining the fate of the deal, as they will need to evaluate the offer and decide whether it is in the best interests of the company and its shareholders.

The outcome of this proposed take-private deal remains uncertain, but one thing is clear: Anne Wojcicki's attempt to buy back 23andMe for a fraction of its former value signals a significant shift in the company's fortunes and the broader consumer genetics market.

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