23andMe Files for Bankruptcy Amid Financial Struggles
Deal News | Mar 24, 2025 | EIN
Embattled genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection in Missouri federal court following a period of financial instability and other challenges, including a cyberattack. Anne Wojcicki, co-founder and CEO of 23andMe, has resigned from her role effective immediately but will remain on the board. With a market capitalization reduced to around $25 million from its earlier valuation of $6 billion, 23andMe has struggled with generating recurring revenue and establishing viable business ventures. Amid security breaches that saw hackers accessing information of nearly 7 million customers, CFO Joseph Selsavage will serve as interim CEO. The company intends to sell its assets through a Chapter 11 plan that will solicit bids over a 45-day process. Wojcicki aims to pursue the company as an independent bidder, emphasizing the need for transparency and choice regarding personal data handling in the future.
Sectors
- Genetic Testing
- Biotechnology
- Cybersecurity
Geography
- United States – 23andMe is a U.S.-based company, and the Chapter 11 bankruptcy filing was made in a Missouri federal court.
Industry
- Genetic Testing – 23andMe operates in the genetic testing industry, offering at-home DNA testing kits for genetic insights and family history.
- Biotechnology – The company also attempted to establish viable research and therapeutic business models, placing it within the biotechnology sector.
- Cybersecurity – Recent cyberattacks affecting 23andMe's genetic database highlight concerns within the cybersecurity space.
Financials
- $25 million – 23andMe's current market capitalization.
- $100 million to $500 million – Estimated range of 23andMe's assets and liabilities according to the bankruptcy filing.
- $6 billion – The former valuation of 23andMe.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| 23andMe | Target Company | Company | A genetic testing company that has filed for Chapter 11 bankruptcy protection. |
| Anne Wojcicki | Former CEO | Person | Co-founder and former CEO of 23andMe, who has stepped down but remains on the board. |
| Joseph Selsavage | Interim CEO | Person | CFO and accounting officer of 23andMe, stepping in as interim CEO. |
| Rob Bonta | California Attorney General | Government | Issued a consumer alert related to the privacy concerns surrounding 23andMe's genetic data. |