Newscasts - DNA testing firm 23andMe files for bankruptcy to sell itself

Chrome Holding Co

24/03/2025 14:16

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Source: 'Reuters - Business videos'

Description: 23andMe on Sunday filed for bankruptcy in the U.S. after struggling with the fallout of a data breach and weak demand for its ancestry testing kits that featured in Oprah Winfrey's annual list of favorite things just eight years ago. Ciara Lee reports.

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Video Transcript:

Despite being featured in Oprah Winfrey's annual list of favorite things just eight years ago, DNA biotech firm 23andMe filed for bankruptcy in the US on Sunday. That's after struggling with the fallout of a data breach and weak demand for its ancestry testing kits. 23andMe has seen a sharp fall in its market value. On Monday, its shares fell 46% after Co-Founder and CEO Anne Wojcicki, who had made multiple failed takeover bids, also resigned. In 2021, billionaire Richard Branson's SPAC took 23andMe public at a $3.5 billion valuation. But a five-month-long data breach in 2023 exposed personal data of nearly 7 million customers. Late last year, it laid off 200 employees and stopped development of all therapies. It also agreed to a $30-million settlement in a lawsuit related to the breach. Wojcicki has been pushing for a buyout since last year but that has been rejected by the board. She reportedly used her contacts including ex-husband and Google Co-Founder Sergey Brin to help drive initial investments. She said in a post on X on Monday that she intends to make another bid. 23andMe secured a financing commitment of about $35 million on Sunday and will continue to operate during the sale process. It did not say if it had other buyout offers or interest.