23andMe (ME) stock nosedived over 33% yesterday after the board unanimously rejected CEO Anne Wojcicki’s takeover offer. The company has set up a Special Committee of the Board of Directors to consider strategic alternatives to enhance shareholder value, including a potential sale. Wojcicki, who is the co-founder, CEO, and the Chairperson of the company’s board, made a new offer to acquire all of the outstanding common stock (not owned by her) at $0.41 per share.
Wojcicki Makes Failed Attempts to Save 23andME
The CEO had earlier made a joint bid to acquire the shares at $2.53 apiece along with New Mountain Capital on February 20, 2025. However, New Mountain Capital later withdrew its interest in continuing with the acquisition. Hence, Wojcicki made a revised non-binding proposal on Sunday via a Schedule 13D filing with the SEC (Securities and Exchange Commission). Wojcicki had also tried to take the company private in 2024 by offering a cash consideration of $0.40 per share.
The board said that the new offer is about 84% lower than the previous bid and not in the best interest of its shareholders. 23andMe is a DNA-testing company, offering consumer genetic testing services.
Is 23andME a Good Stock to Buy?
23andMe stock has taken a severe beating amid company-specific challenges. Once valued at $6 billion, 23andME has been unsuccessful at building a profitable business model. Its DNA testing business has limited upward potential as its test kits are used for a single time, resulting in no recurring revenues.
The company undertook mass layoffs in November, while also trying to raise capital, streamline expenses, and end the leasing agreements. 23andMe also shut down human trials for two of its lead drug candidates.
The company’s Special Committee is tasked with finding an apt solution to 23andMe’s problems, including asset sale, restructuring, or business combination. ME stock has lost over 86% in the past year due to these challenges.
