23andMe CEO Rules Out Third-Party Takeover Offers

Date: Investing.com —

23andMe (NASDAQ:ME) Chief Executive Officer Anne Wojcicki has ruled out the possibility of third-party takeover offers according to a regulatory filing on Monday.

Wojcicki stated that she believes “the best path forward” for 23andMe is for her to take the company private. She remains “committed to completing an acquisition of 23andMe.”

This announcement follows the resignation of all seven independent directors on 23andMe’s board last month due to a stalled management buyout proposal made by Wojcicki earlier in the year. The independent directors noted that no satisfactory take-private offer that serves the interests of non-affiliated shareholders has been received.

Wojcicki’s bid, proposed in July, aimed to take 23andMe private and acquire all shares not owned by her and her affiliates at $0.40 per share. Initially, she expressed openness to considering outside bids during the evaluation of this deal.

23andMe is recognized for its comprehensive genetic testing service that provides ancestry-related reports. The company went public in 2021 through a merger with a blank check group supported by Virgin Group founder Richard Branson, starting with a valuation of $4.5 billion. However, its market capitalization has since dropped to over $206 million as it has struggled with revenue goals.

In its most recent fiscal year, 23andMe’s consumer division generated $220 million in total revenue, much lower than initial forecasts. The company also reported a loss of $176 million before interest, taxes, depreciation, and amortization for its 2024 fiscal year, compared to a loss of $161 million in the previous year.

(Reuters contributed reporting.)