Today's News: Genetic Testing Company 23andMe Files for Bankruptcy
The bankruptcy follows years of mounting losses, failed pivots, and a major data breach. Privacy concerns have surged, with officials urging customers to consider deleting their genetic data.
Photo: George Frey/Reuters
Overview
Date: March 24, 2025
Topic: 23andMe Files for Bankruptcy Amid Security Concerns and Strategic Turmoil
Summary: Genetic testing company 23andMe has filed for Chapter 11 bankruptcy after years of mounting losses, failed pivots, and a major data breach. The company’s co-founder and CEO, Anne Wojcicki, has stepped down to bid for the company independently during the court-supervised sale process. While 23andMe continues operations, privacy concerns have surged, with officials urging customers to consider deleting their genetic data. Once valued at over $6 billion after its 2021 public debut, the company now has a market cap of under $50 million and faces liabilities potentially up to $500 million. The fallout reflects both a broken business model and public trust shaken by security lapses.
Sources
The New York Times: 23andMe Files for Bankruptcy and CEO Anne Wojcicki Steps Down
NBC News: 23andMe files for bankruptcy, Anne Wojcicki steps down as CEO
Fox Business: 23andMe files for bankruptcy as California AG urges customers to delete data
The Wall Street Journal: 23andMe Files for Bankruptcy, as CEO Anne Wojcicki Resigns
Key Points
23andMe filed for Chapter 11 bankruptcy to initiate a sale process, aiming to maximize business value.
CEO Anne Wojcicki resigned to participate as an independent bidder; she remains on the board.
The company peaked at a $6 billion valuation after going public in 2021 but now trades below $1 per share.
The core product—a DNA testing kit—struggled to generate repeat business or sustainable revenue through subscriptions.
A 2023 data breach compromised nearly 7 million profiles, further eroding trust and prompting lawsuits.
California's attorney general issued a consumer alert advising users to delete their genetic data amid sale-related privacy concerns.
Despite bankruptcy, 23andMe claims no immediate changes to how it stores or manages user data.
Unique Highlights
The Wall Street Journal reveals technical issues with data deletion on 23andMe’s website and discusses Wojcicki’s earlier attempt to go private using supervoting shares, which ultimately failed.
The Washington Post provides step-by-step instructions for users to delete their DNA data and underscores the long-term privacy risks of genetic data exposure or sale.
Fox Business reports the company secured $35 million in debtor-in-possession (DIP) financing and previously settled a lawsuit over the data breach for $30 million.
NBC News confirms interim CEO Joseph Selsavage and cites the company’s market cap at just $25 million as of Monday.
CNN and NBC News both note the mass resignation of all seven independent board directors in 2023, citing disagreements with Wojcicki’s privatization efforts.
The New York Times is the only outlet to detail the specific targeting of Jewish and Chinese customers in the 2023 breach.
Contrasting Details
The New York Times emphasizes Wojcicki’s disappointment that her privatization bids were rejected, while NBC News highlights her statement accepting responsibility for the company’s challenges.
The Washington Post frames the bankruptcy as an urgent privacy risk, urging immediate action, whereas other outlets take a more neutral tone on data handling.
Fox Business and CNN state that 23andMe's assets and liabilities fall between $100 million and $500 million, but The New York Times and The Wall Street Journal do not specify the range.
CNN downplays the scale of the breach impact compared to The New York Times, which cites 7 million users and targeted demographics.
The Wall Street Journal and NBC News point to failed drug development and high R&D costs as major strategic failures, which are not addressed in Fox Business or CNN.
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