23andMe, the U.S.-based genetic testing company, has filed for bankruptcy protection in an effort to sell itself, the firm confirmed. The company, once valued at $6 billion, has seen its fortunes decline due to slowing sales, a major data breach, and struggles to sustain its business model.
In 2021, 23andMe went public through a merger with billionaire Richard Branson’s special-purpose acquisition company (SPAC), securing a $3.5 billion valuation. That same year, rival AncestryDNA was acquired by Blackstone Group, despite weakening demand for at-home DNA tests.
A five-month data breach in 2023 exposed the personal information of nearly 7 million customers, severely damaging 23andMe’s reputation. The company later agreed to a $30 million settlement in a related lawsuit.
By late 2024, 23andMe had laid off 200 employees—about 40% of its workforce—and halted development of all therapeutic programs. Co-founder Anne Wojcicki, who stepped down as CEO on Sunday, had been pushing for a buyout since April 2024 but faced resistance from the board. Reports indicated she sought help from former husband and Google co-founder Sergey Brin to secure early investments.
Wojcicki confirmed in a post on X on Monday that she intends to bid for the company, though she provided no further details. Her previous offer of 0.41per share valued 23andMe at roughly 11 million—far below its current market capitalization of $50 million and a stark drop from its 2021 peak.
23andMe initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri, aiming to "facilitate a sale process to maximize the value of its business," according to board chair Mark Jensen. The company secured $35 million in financing to continue operations during the sale but did not disclose whether other buyers have expressed interest.
Its estimated assets and liabilities range between 100 million and 500 million.
Wojcicki, who co-founded the company in 2006, expressed disappointment over the bankruptcy but reaffirmed her commitment to 23andMe’s long-term vision. "If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our goal of being a global leader in genetics," she said.
Meanwhile, concerns over data security persist. California Attorney General Rob Bonta issued a consumer alert on Friday, urging customers to consider requesting deletion of their genetic data, citing the company’s financial instability.
Following Wojcicki’s departure, Chief Financial Officer Joe Selsavage will serve as interim CEO. The company’s future now hinges on whether a buyer emerges to salvage what remains of the once-high-flying genetic testing pioneer.