23andMe, a genetic testing company that has been struggling with financial difficulties, disclosed that it has reached an agreement to sell itself to a nonprofit organization that is led by Anne Wojcicki, the company’s former CEO and co-founder.
In March, 23andMe filed for bankruptcy following a significant cyberattack in 2023 and a subsequent litigation settlement.
Wojcicki resigned in order to become an independent bidder for the company. However, Regeneron, a pharmaceutical company, was declared as the company’s acquirer with a $256 million proposal.
Wojcicki’s nonprofit TTAM Research Institute, as reported by the Wall Street Journal, submitted an unsolicited proposal earlier this month, which reopened the tendering process. Regeneron declined to surpass TTAM’s $305 million offer.
In the announcement, TTAM (an acronym that corresponds with the first letters of Twenty-Three And Me) stated that customers will be informed of the acquisition at least two business deals prior to the deal’s closure.
The nonprofit will also maintain its adherence to 23andMe’s privacy policies, which enable customers to delete their data and request to opt-out of research.
It also stated that it will establish a Consumer Privacy Advisory Board within 90 days of the closing.
“I am overjoyed that the TTAM Research Institute will be able to continue the mission of 23andMe, which is to assist individuals in accessing, comprehending, and utilizing the human genome,” Wojcicki stated on LinkedIn.
“We are of the opinion that it is imperative that individuals are granted the freedom to make decisions and maintain transparency regarding their genetic data, as well as the opportunity to continue their education regarding their ancestry and health risks as they see fit.”
The bankruptcy court must still sanction the acquisition, and it is confronted with additional legal obstacles.
This week, a group of 28 state attorneys general, led by Letitia James of New York, filed a lawsuit opposing the sale of the company’s assets.
James stated, “23andMe is unable to auction the personal genetic information of millions of individuals without their consent.”
According to the Wall Street Journal, a privacy ombudsman appointed by a court has also stated that it is unclear whether 23andMe’s privacy policies permit the sale of its genetic data.
It is also unclear whether 23andMe could regain consumer trust if the agreement is finalized.
Since the company filed for bankruptcy, 15% of customers have requested the deletion of their data, according to interim CEO Joseph Selsavage during a recent meeting with the House Oversight Committee.
New information has been disclosed regarding Meta’s $14.3 billion acquisition of Scale.
Meta’s agreement to partially acquire the AI startup Scale, which will grant it 49% ownership, is undoubtedly unusual.
Scale has officially disclosed that the transaction is valued at over $29 billion and that the proceeds will be “distributed” to shareholders and vested equity holders (also known as employees).
This will provide them with “substantial liquidity” while enabling them to continue as shareholders.
Meta is also recruiting Alexandr Wang, the renowned CEO of Scale, who famously bowed out of MIT at the age of 19 to establish the company, which provides AI training data that is verified by humans.
Bloomberg was informed by sources that Meta would not acquire shares from its current shareholders, despite the fact that it may appear to do so. TechCrunch has verified that investors are receiving dividends.
Bloomberg reports that Accel, which provided early support to the company, is expected to receive a payout of $2.5 billion. Accel declined to provide a response.
Scale was last valued at $14 billion after raising a $1 billion Series F a year ago and has dozens of investors, including Amazon and Meta.
Therefore, a dividend payout of this magnitude is nearly equivalent to purchasing the company. It will be necessary to wait and observe whether regulators concur.
