Consumer genetics company 23andMe struggles with declining revenue and contemplates strategic options including a sale, restructuring, or business combination. The company's CEO faces pressure from the board and explores ways to ensure its long-term survival.
23andMe, the consumer genetics company, has revealed a bleak financial outlook, reporting an 8% decline in consumer services revenue for the third quarter, marking the second consecutive year of such a drop. This downturn has prompted the company to explore a range of strategic options, which could include a sale of the company or its assets, a restructuring, or a business combination.
The company's earnings release on Tuesday stated, 'Management has determined that there is substantial doubt about the Company's ability to continue as a going concern.'This financial instability has significantly impacted 23andMe's valuation, which has plummeted to less than $100 million, a far cry from its peak value of $6 billion. In March, an independent committee was formed to evaluate potential paths forward for the company. However, this committee's efforts faced a major setback when all independent directors resigned from 23andMe's board two months later. They cited disagreements with CEO Anne Wojcicki about the strategic direction of the company.Following the resignations, Wojcicki appointed new members to the board and announced plans to reduce the workforce by 40% and close the therapeutics business as part of a broader restructuring strategy. While the company is actively exploring these options, there is no guarantee that any of these proposals will materialize. Wojcicki has openly expressed her desire to take the company private, but it remains unclear whether she will submit another proposal to achieve this goal
FINANCE REVENUE GENETICS TECHNOLOGY BUSINESS COMBINATION
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