23andMe, Once Worth $6 Billion, Files for Bankruptcy CEO Anne Wojcicki resigned on Sunday, though she says she'll independently bid for ownership of the company she co-founded.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- 23andMe filed for bankruptcy in Missouri federal court on Sunday.
- Anne Wojcicki also resigned as the company’s CEO.
- 23andMe was once valued as much as $6 billion but is now worth $23 million.
Genetic testing company 23andMe filed for bankruptcy in the U.S. on Sunday, and its CEO resigned following a steep decline in the company's market value and decreased demand for its products following a massive data breach in 2023.
23andMe released a statement on Sunday announcing that it had started Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri and intends to keep running its business as usual throughout the process. 23andMe is asking the court for authorization to start the process of selling all of its assets. If the court approves, the company will open itself up to bidders over a 45-day process.
The statement also disclosed that Anne Wojcicki, 51, resigned as 23andMe's CEO on Sunday but will continue to serve on the company's board of directors. Wojcicki co-founded the company in 2006. Joe Selsavage, the company's chief financial and accounting officer, is now 23andMe's interim chief executive officer.
Anne Wojcicki. Photo by MICHAEL TRAN/AFP via Getty Images
Wojcicki, who owns 49% of 23andMe, wrote in a post on X on Monday that she was "disappointed" by the bankruptcy proceedings and that the company had turned down her recent offer to take it private. Wojcicki submitted multiple rejected proposals to buy 23andMe, one in July 2024 and the most recent one in February to purchase all of the company's shares that she didn't already own in cash for $2.53 per share, for an equity value of $74.7 million.
Related: 'Surprised and Disappointed': All Independent Board Members of 23andMe Resign, Leaving Only the CEO
Wojcicki wrote in the post that she had resigned from the CEO position in order to be "in the best position" to bid again for ownership of the company. She emphasized that 23andMe had more than 15 million customers and over 250 publications.
"We have had many successes but I equally take accountability for the challenges we have today," she wrote.
The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have…
— Anne Wojcicki (@annewoj23) March 24, 2025
23andMe went public at a $3.5 billion valuation in 2021, with its market value hitting $6 billion shortly after. Its value has dropped precipitously since then, reaching around $23 million at the time of writing.
Demand for 23andMe's saliva-based ancestry testing kits has dwindled in recent years as customers use the kits once and see no incentive to order another one, per Reuters. The company's reputation also suffered after a data breach in 2023 affected nearly seven million people, or about half of the company's user base at the time. 23andMe agreed to pay $30 million in September to settle a lawsuit related to the breach.
Data privacy is still a user concern, with California Attorney General Rob Bonta issuing an alert on Friday to 23andMe customers reminding them that they can delete their genetic data in light of the company's financial troubles.
All of the company's independent board members resigned in September due to strategic differences with Wojcicki, and have since been replaced. In November, 23andMe laid off 40% of its workforce, or over 200 people, as it struggled to cut costs.
