23andMe CEO Seeks to Privatize Company

Anne Wojcicki, CEO of genetic testing company 23andMe, has put forth a proposal to take the company private as its stock price remains below $1. In a filing with the U.S. Securities and Exchange Commission, Wojcicki offered to buy all outstanding shares for 40 cents each, which represents an 11% premium over the stock's closing price in April. She has expressed a strong commitment to this acquisition, stating she would not support any alternative transactions. The proposal comes as 23andMe's stock has plummeted over 95% since its public debut in 2021, following a merger with a special purpose acquisition company that initially valued the firm at approximately $3.5 billion. The company has faced challenges in generating consistent revenue, as customers typically only need to purchase its DNA testing kits once. Wojcicki believes that transitioning to a private entity would allow 23andMe to focus on its long-term mission without the pressures of public market expectations. In November, 23andMe received a deficiency notice from Nasdaq, giving it 180 days to raise its share price above $1. In response, the company's board formed a "Special Committee" to explore options for improving stock performance. This committee will ultimately decide whether to approve Wojcicki's proposal to take the company private. As of Wednesday, shares of 23andMe closed at 40 cents, the same price offered in Wojcicki's proposal. The company has declined to comment on the matter.