- A nonprofit run by Anne Wojcicki, the cofounder and former CEO of 23andme, has agreed to buy the genetic testing company for $305 million. Wojcicki’s return is likely to spark lawsuits. The nonprofit, TTAM Research Institute, says it will comply with 23andme’s privacy policies.
The swift and sudden fall—and attempted rebirth—of genetic-testing company 23andme has taken a final twist. A nonprofit run by Anne Wojcicki, the co-founder and former CEO of the company, has reached an agreement to buy the company, with a $305 million offer.
The deal, announced late Friday, will see Wojcicki take control of essentially all of the company’s assets.
For a long time, it appeared Wojcicki wouldn’t regain control of the company she left in March. New York-based biotech company Regeneron Pharmaceuticals was set to buy 23andMe for $256 million, but in the final round of bidding, Wojcicki’s TTAM Research Institute came out of top.
The sale of 23andme, which was once valued at $6 billion, led to a wave of consternation about what would happen with the customer genetic data it held. Approximately 15% of its customers, some 1.9 million people, have requested their data be deleted from the company servers since 23andme filed for bankruptcy in March. The sale of the company has also attracted the interest of the House Oversight Committee, which was concerned about where the data could end up.
TTAM says it will comply with 23andMe’s “privacy policies and applicable law” and has made “binding commitments” to create additional protections and privacy safeguards. These will include a consumer-privacy advisory board.
23andme’s troubles came following a hack of the company in 2023 which raised several concerns about the company. For instance, one online post that offered data for sale bragged of having a huge database of Ashkenazi Jews, including people whose ties with that ancestry are less than 1%.
Wojcicki, while she was still CEO, oversaw three rounds of layoffs and suggested a plan that would transform the company from just a supplier of ancestral data and into a healthcare company that develops drugs and sells subscription health reports.
Wojcicki first offered to buy the company in mid-2024. The 23andMe board rejected her bid to take the company private, later quitting en masse.
The purchase of 23andme by a group run by Wojcicki is likely to spark lawsuits. Earlier this year, an independent investor in 23andMe spoke with Fortune expressed disbelief that Wojcicki, whom he held responsible for allowing 23andMe’s valuation to plunge, could turn around and buy the company at a low price. “I can’t understand why there aren’t other bids,” the investor, who asked that his privacy be protected, told Fortune.
This story was originally featured on Fortune.com
