23andMe filed for bankruptcy on Sunday, facing challenges from a significant data breach and a decline in demand for its ancestry testing kits, which had previously gained popularity after being featured in Oprah Winfrey’s annual favorites list eight years ago.
The company’s market value has dramatically decreased, with shares plummeting 46% to 96 cents on Monday, following the resignation of co-founder and CEO Anne Wojcicki, who had made several unsuccessful takeover attempts. Chief Financial Officer Joe Selsavage has stepped in as interim CEO.
The company went public in 2021 at a valuation of $3.5 billion through a SPAC led by billionaire Richard Branson. At the same time, competitor AncestryDNA was acquired by Blackstone Group, despite both companies experiencing declining sales.
A data breach that lasted five months in 2023 exposed the personal data of nearly 7 million customers, severely harming 23andMe’s reputation. In response to the challenges, the company laid off 200 employees, halted the development of new therapies, and agreed to a $30 million settlement related to the breach.
Source (CNBC)
