23andMe Board Resigns Over Private Takeover Strategy Disagreements

Background on 23andMe's Leadership Crisis

All seven independent directors of 23andMe's board resigned on Tuesday, citing significant disagreements regarding CEO Anne Wojcicki's plan to take the company private. This unexpected departure leaves only Wojcicki, the co-founder, on the board, highlighting a rift in strategic direction.

Privatization Proposal and Board Dynamics

Wojcicki submitted a proposal in July to take 23andMe private after expressing interest in acquiring the company earlier this year. The board's Special Committee rejected this plan, citing a lack of premium and committed financing. The board expressed frustration over Wojcicki's inability to present a viable, actionable proposal after numerous months of deliberation. The resignation letter indicated mounting worries over the company’s strategic direction.

Market Implications and Future Directions

• 23andMe went public in 2021, achieving a valuation of approximately $3.5 billion.
• As of recent reports, the company’s market cap has drastically reduced to under $200 million.
• Investor confidence has been shaky due to disappointing revenue streams from one-time DNA kit sales.

Responding to the board’s resignation, Wojcicki expressed disappointment but reaffirmed her commitment to taking 23andMe private, asserting it as the best path for the company’s long-term success. Wojcicki plans to start seeking new independent directors to stabilize the company's leadership.