23andMe's former CEO agrees to buy the company for $305 million
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Anne Wojcicki is poised to regain control of genetics testing company 23andMe, which she cofounded and led until earlier this year, after agreeing to put much of her personal fortune on the line.
Why it matters: This is the same person that 23andMe customers originally trusted with their personal data, albeit under a much more opaque governance structure.
Catch up quick: Regeneron Pharma in May won a bankruptcy auction for 23andMe's assets, bidding $265 million, beating out Wojcicki (who'd been trying to purchase the company since well before the Chapter 11 filing).
- The move sparked both congressional inquiry and lawsuits, including from 27 state attorneys general who claim a sale can't occur without consumer consent.
- Wojcicki fought to get the auction reopened, and on Friday reached an agreement to buy the 23andMe assets for $305 million.
- A Regeneron spokesperson says the company "declined to submit a new bid ... based on our assessment of 23andMe's remaining value." Or, as Regeneron CEO Leonard Schleifer told CNBC's Becky Quick, "the juice isn't worth the squeeze."
Behind the scenes: Wojcicki made the offer through TTAM Research Institute, a public-benefit corporation formed just last month.
- She is the only person listed on TTAM's only filing with the California secretary of state, and the 335-page merger agreement doesn't list any other executives.
- Wojcicki originally told the court that she had the support of an undisclosed Fortune 500 company, which some reporters speculated was Oracle, but no such company appears in any of the relevant documents.
- Sources tell Axios that the entire $305 million comes from Wojcicki herself, and that 23andMe's special committee verified that she has the necessary funds.
Look ahead: A court hearing to approve Wojcicki's bid is scheduled for tomorrow.
The bottom line: Even if she clears all the legal hurdles, it remains unclear how Wojcicki plans to make 23andMe into a viable business (even if under a nonprofit umbrella).
- It lost a whopping $666 million in its last fiscal year before going bankrupt, and revenue had been falling since a 2023 data breach. No one doubts Wojcicki's sincerity or smarts, but longtime board members quit last year after losing faith in her strategy.
- And now she's doubling down, including with a massive financial commitment, rather than trying something new.
Go deeper: 23andMe bankruptcy underscores health privacy gaps
