Former unicorn 23andMe loses 33% after latest Wojcicki buyout bid

Shares of 23andMe, the company that disrupted the genetic testing industry, plunged 33% yesterday, March 3, hitting an all-time low. A company special committee rejected the latest buyout offer from founder Anne Wojcicki, just weeks following her previous offer. She is fighting to keep the company afloat but remains opposed to a third-party takeover.

23andMe shares plummeted 33% yesterday to close at $1.47 per share — a record low. In premarket trading today, they have rebounded slightly, rising 4% in the first 30 minutes.

Yesterday, Wojcicki offered to buy out shareholders at $0.41 per share, according to documents submitted to the U.S. SEC. This came less than two weeks after her previous offer: On February 20, she announced that, alongside alternative investment firm New Mountain Capital, she was prepared to acquire shares at $2.53 each. The deal required approval from a special 23andMe committee for evaluating strategic alternatives. However, New Mountain pulled out and the offer was rescinded, according to the latest filing. The committee swiftly rejected Wojcicki’s latest bid, citing the low price.

Anne Wojcicki cofounded (with geneticist Linda Avey) 23andMe in 2006. The goal was to make genetic testing accessible to a broader audience. Early investors included Google cofounder Sergey Brin — Wojcicki’s husband at the time — and Yuri Milner and Google Ventures. With such high-profile backing and celebrity endorsements, 23andMe managed to sell affordable genetic tests.

In 2021, 23andMe went public on the Nasdaq, reaching a market valuation of as high as $6 billion. However, soon after its stock market debut, rising interest rates made financing conditions tighter in the economy, sales slumped, its premium membership model did not live up to expectation, and the company failed to turn a profit. In 2023, 23andMe initiated layoffs.

The following year, Wojcicki first attempted to take 23andMe private, offering to buy out shareholders at $0.40 per share. This led to the resignation of all independent board members, who opposed her plan.

In autumn 2024, 23andMe unveiled a sweeping restructuring, including a 40% workforce reduction and the shutdown of all clinical and preclinical research programs.

According to MarketWatch, just two analysts cover 23andMe. One rates it as a “sell” and the other a “buy.” Their average target price of $8.40 per share is 5.7 times the last closing price.