23andMe, a genetic company that made headlines for a data breach that exposed customer information since the end of 2023, has recently filed for Chapter 11 bankruptcy. Founder and CEO Anne Wojcicki has immediately stepped down, appointing Joe Selsavage as the new CEO to oversee the company’s operations.
The main product of 23andMe is a genetic testing kit that can be done at home to determine relationships with relatives or ancestors. The company went public in 2021 with a valuation of $6 billion, but has since decreased to around $50 million after failing to turn a profit. The data breach incident also led to the company being sued for an additional $30 million in damages.
Prior to this, Wojcicki had proposed to buy back the entire business for $50 million, but the newly appointed board opposed this proposal, stating that allowing the company to undergo a legal restructuring process would benefit shareholders more.
Source: The Verge
TLDR: 23andMe faces bankruptcy after a data breach, with founder Anne Wojcicki stepping down and new CEO Joe Selsavage taking over. The company’s value has plummeted due to financial struggles and legal challenges.
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