23andMe Board Resignations Amid Privatization Push

All independent directors of 23andMe’s board resigned following prolonged negotiations with CEO Anne Wojcicki. The directors cited differences in opinion regarding the company's future, which Wojcicki aims to take private. 23andMe has faced challenges, including financial losses and privacy concerns.

In a significant shake-up, all independent directors of the genetic-testing giant 23andMe tendered their resignations this week. This rare move comes amidst ongoing negotiations with CEO and co-founder Anne Wojcicki, who is keen on taking the company private. The departing directors addressed a letter to Wojcicki on Tuesday, highlighting the absence of a 'fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders' despite months of efforts.

The directors mentioned that their departures were prompted by Wojcicki's concentrated voting power and a 'clear' disagreement on the company's future path. Wojcicki, who retains 49% voting power, expressed her disappointment in a subsequent memo, yet reiterated her belief that privatization would benefit the company in the long term, free from public market pressures.

23andMe, which became public in 2021, has faced numerous hurdles, including a substantial net loss of $667 million in the last fiscal year and a significant stock price decline. Privacy concerns have also plagued the company, evidenced by a recent $30 million settlement related to a data breach. Wojcicki's intention to buy all outstanding shares to take the company private was announced in April, emphasizing her desire to retain control and dismiss alternative transactions.

(With inputs from agencies.)