Huge data leak leads to bankruptcy
The DNA-Test provider 23Andme has filed for bankruptcy. The company, which was evaluated two billion dollars two years ago, is worth only $50 million after a severe data leak and sales.
From the billion dollar company to the renovation case
The biotech company 23Andme, known for its DNA tests on genealogy, filed for bankruptcy on Sunday. The company, which was evaluated on the stock exchange two billion dollars (around 5.5 billion euros) two years ago, is worth just $ 50 million today. Founder and CEO Anne Wojcicki announced her immediate resignation. A serious hacker attack in 2023 marked the beginning of the end of the former flagship company.
Personal data was compromised by almost seven million customers – about half of all users. The attackers targeted Jewish and Chinese customers. Although no DNA profiles were affected, the stolen data with family trees, years of birth and geographical data were still extensive.
According to Reuters has been fighting 23Ande since then with massive sales burglaries. In the first nine months of the current financial year, the company recorded a drop in sales of seven percent and losses of $ 174 million (around 160 million euros). In November 2024, the company released 200 employees – 40 percent of the workforce.
Wojcicki plans takeover
The outgoing CEO Wojcicki, who holds 49 percent of voting rights, now wants to start as a buyer. Your last takeover offer of 41 cents per share – which corresponds to an assessment of eleven million dollars (around ten million euros) – was rejected by the board.
CFO Joe Selsavage takes over the management for the transition period. 23AndMe assures that the business operations maintain the business during the sales process. The company received a bridging financing of $ 35 million (around 32 million euros). Nevertheless, California’s Attorney General Rob Bonta warns the users to have their “data deleted and all genetic samples that are owned by the company.” The business with genetic data has always been controversial, even in the case of 23Andme.
Anyone who has transmitted their DNA to the company also indirectly gave information about relatives – without their consent. Experts see genetic data particularly worth protecting because they not only affect individual people, but entire families.
