23andMe's Former CEO Anne Wojcicki Just Regained Control of the Company She Cofounded. Here's How. Meanwhile, dozens of states are suing 23andMe to block the sale of DNA data collected by the company.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- 23andMe co-founder Anne Wojcicki is back at the helm.
- Wojcicki, who stepped down as 23andMe CEO in March, leads a nonprofit called TTAM — the first letters of 23andMe.
- TTAM is the new buyer for 23andMe’s assets, with a bid of $305 million.
A nonprofit headed by Anne Wojcicki, the 51-year-old co-founder and former CEO of genetic testing startup 23andMe, is the new buyer for 23andMe's assets.
23andMe stated on Friday that Wojcicki's nonprofit was its new buyer, with a bid of $305 million. The nonprofit, called TTAM after the first letters of 23andMe, won a bid to acquire the startup on Friday following its bankruptcy filing in March.
Related: 23andMe to Pay $30 Million Settlement After Massive Hack. Here's Who's Eligible to Make a Claim.
TTAM replaces biotech company Regeneron as 23andMe's buyer. Last month, Regeneron won the bidding during the bankruptcy auction to purchase 23andMe for $256 million. Wojcicki reopened the bidding earlier this month with the offer through TTAM — and won.
Regeneron told CNN Business that it decided not to make a bid to top TTAM's offer "based on our assessment of 23andMe's remaining value." TTAM's bid still needs to be approved by the bankruptcy court before it becomes official. A hearing is scheduled for Tuesday.
The bid also faces legal hurdles. Twenty-seven U.S. states and the District of Columbia filed a joint lawsuit last week to block the sale of genetic data by 23andMe without approval from customers. The lawsuit, led by New York Attorney General Letitia James, alleges that biological data is too sensitive to be sold without each person's consent.
"23andMe cannot auction millions of people's personal genetic information without their consent," James stated in a press release.
23andMe customers use saliva-based testing kits to test their DNA to learn more about their genetic history and connect with relatives. The company has collected DNA samples from over 15 million people.
Nearly two million 23andMe customers, or 15%, have deleted their genetic data from 23andMe's database since March, per The Wall Street Journal.
23andMe founder Anne Wojcicki. Photo by Andrew Harnik/Getty Images
Wojcicki co-founded 23andMe in 2006 and submitted multiple failed proposals to buy the company as CEO, one in July 2024 and another in February, that would have valued the company at $74.7 million.
She stepped down as CEO in March as the company filed for Chapter 11 bankruptcy, stating in an X post at the time that she had resigned in order to be "in the best position" to bid for ownership of the company.
Related: 23andMe DNA Technology Helps Family Find Kidnapped Daughter After 51 Years
23andMe faced a significant decline in market value after a massive data breach in 2023 that compromised the data of seven million users. The incident diminished consumer trust and reduced demand for 23andMe's genetic testing products. In September, 23andMe agreed to settle a lawsuit related to the breach for $30 million.
The startup has had difficulty finding a profitable business model. Customers use 23andMe's kits once and don't have to order another one, per Reuters.
In November, 23andMe laid off 40% of its workforce, or nearly 200 people.
The startup, which went public at a $3.5 billion valuation in 2021, was worth around $110 million at the time of writing.
