23andMe deal should never be cloned

Chrome Holding Co

20/09/2024 16:23

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Robert Cyran
       NEW YORK, Sept 20 (Reuters Breakingviews) - The
genetic-test firm’s entire board, save founder Anne Wojcicki,
resigned in frustration with her stalled takeover bid. The offer
is perhaps the least-worst detail. The once $6 bln company
should never have gone public and super-voting stock primed it
for a governance implosion.
    Full view will be published shortly.
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    CONTEXT NEWS 
    All seven independent directors on 23andMe’s board resigned
on Sept. 17, leaving Anne Wojcicki, the company’s chief
executive officer and co-founder, as the only remaining board
member.
    Wojcicki offered to take the company private in July, but
that offer was rejected by a special committee formed by the
board, because it said the 40 cents per share offer didn’t
provide a premium to the stock’s trading price and was not fully
financed. Super-voting stock gives Wojcicki 49.8% of the vote.
    The directors said they had yet to receive a fully financed
and acceptable offer, did not believe one was coming, and
therefore were unwilling to consider further extensions. The
directors that resigned are Roelof Botha, Patrick Chung, Sandra
Hernández, Neal Mohan, Valerie Montgomery Rice, Richard
Scheller, and Peter J. Taylor.
    In a statement, Wojcicki said she continued to believe that
taking the company private was the best path to success, and
that 23andMe would immediately begin to identify new independent
directors to the board.

 (Editing by Lauren Silva Laughlin and Sharon Lam)
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