All seven independent directors of 23andMe resigned from the company’s board, a decision that CEO and co-founder Anne Wojcicki said left her “surprised and disappointed,” according to a memo she sent to employees.
Wojcicki has been attempting to take the genetic-testing company private, a move she believes would be in its best long-term interest.
23andMe, which went public in 2021 through a special purpose acquisition company (SPAC), has seen its stock price plummet by more than 95% since its peak. Wojcicki’s proposal to buy out the company for 40 cents per share in July was rejected by a special committee of the board, which cited a lack of financing and the absence of a premium over the stock’s market price. The shares closed at 34 cents on Tuesday, giving the company a market value of $173 million, a steep decline from its $3.5 billion valuation at the time of its public debut.
In their resignation letter, the independent directors stated they had yet to receive a “fully financed, fully diligenced, actionable proposal” from Wojcicki and expressed frustration over the lack of progress. The directors decided to step down, noting that they no longer believed a satisfactory offer would be forthcoming.
Wojcicki, however, remains committed to taking 23andMe private, stating that the company would be better suited for success outside the pressures of the public market. In her memo to staff, she announced that the company would begin searching for new independent directors to fill the board positions.
The resignations come as 23andMe continues to face challenges, including a slowdown in demand for its DNA testing kits and difficulties in generating enough subscription revenue to offset declining sales. Despite these setbacks, Wojcicki emphasized her belief in the company’s mission and potential, reaffirming her dedication to its long-term goals.
The board’s decision follows months of tension between Wojcicki and the independent directors over the strategic direction of the company, with the former board members remaining unconvinced that her take-private plan would serve the best interests of all shareholders.
