By Katherine Hamilton
23andMe rejected its chief executive's proposal to buy back the company at 41 cents a share as the struggling company explores strategic alternatives.
Chief Executive Anne Wojcicki on Sunday proposed buying back the DNA-testing company she co-founded for 41 cents a share. That proposal was rejected by the board of directors on Monday.
The board said Wojcicki's offer was 84% less valuable than a previous one she had made. In February, Wojcicki teamed up with New Mountain Capital to offer to buy 23andMe's outstanding shares for $2.53 a share.
But later that month, New Mountain said it was no longer interested in participating in an acquisition. Wojcicki said she was still committed.
Once valued at $6 billion, 23andMe has struggled to find a profitable business model. Shares have lost 86% of their value over the past year, hitting $1.48.
23andMe laid off 40% of its workforce in November and said in January it was exploring strategic alternatives including a business combination or sale of its assets. In the meantime, it is attempting to raise capital, cut costs and end leases.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
March 03, 2025 17:32 ET (22:32 GMT)
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