23andMe's business is basically worthless. Its CEO now wants to buy it.
23andMe chief Anne Wojcicki notified the board and will begin seeking funding to take the struggling DNA company private, per an SEC filing.
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- 23andMe cofounder and CEO Anne Wojcicki wants to take the once-hot DNA company private.
- 23andMe said a Special Committee would evaluate the proposal in light of other options.
- The company's valuation has tumbled since its stock market debut in 2021.
23andMe — the struggling DNA company once valued in the billions — was essentially worthless as of Wednesday.
But in a filing late Wednesday, Anne Wojcicki revealed she wants to buy back the company she cofounded in 2006 and take it private.
On Saturday, Wojcicki notified board members of her plans to acquire all outstanding shares in the company, indicating that "she was working with advisors and plans to begin speaking to potential partners and financing sources," according to an SEC filing.
The filing states Wojcicki wants to retain control of the company and "will not be willing to support any alternative transaction."
23andMe confirmed it was aware of Wojcicki's plans in a press release Thursday. It said its board formed a Special Committee on March 28 and would review Wojcicki's proposal "when and if it is made available and evaluate it in light of other available strategic alternatives, including continuing to operate as a publicly traded company."
23andMe debuted on the stock market in 2021 but has taken an epic fall from its peak valuation of $6 billion, with financial and strategic missteps, as well as high-profile hacks of user data, dragging the company down.
Wojcicki has attempted to reverse course by announcing layoffs, selling subsidiaries, pivoting to subscriptions, and offering various healthcare services. It hasn't worked.
Shares shot up to trade at roughly 50 cents on Thursday after Wojcicki's filing. But the stock had been trading at just 36 cents on Wednesday, a new low.
The Nasdaq had previously threatened to delist the company if it kept trading for lower than $1.
Before Wednesday's filing, the company's enterprise value was negative since its shares were valued at less than the cash the company reported having on hand.
A 23andMe spokesperson told Business Insider that the Special Committee declined to comment. A rep for Wojcicki did not immediately respond to a request for comment from BI.