23andMe files for bankruptcy, seeks buyer

23andMe is preparing to become absorbed into the genealogical tree of some other company. The ancestry startup filed for bankruptcy and launched a sale process late Sunday night, and also announced the resignation of longtime CEO Anne Wojcicki.

How we got here: 23andMe first rocketed into the mainstream in the late 2000s, with its at-home DNA testing kits granting insights into family histories and genetic profiles based on a simple saliva sample.

The company’s valuation peaked at ~$6 billion soon after going public in 2021. But a steep drop in demand, along with a 2023 data breach exposing millions of customers’ personal info, has dropped its valuation to ~$19.5 million as of yesterday’s close.

The big question

23andMe’s financial distress and bankruptcy filing has led many of its 15+ million customers to wonder: What does a sale mean for the vast amounts of genetic data the company stores?

• According to legal experts, this virtually unprecedented repository of genetic info––considered one of 23andMe’s core business assets––can essentially be sold to the highest bidder.
• 23andMe had already been using genetic data from customers to develop drugs with pharmaceutical company GSK, meaning a new buyer would likely seek similar opportunities.

But there’s a way out: Customers who wish to permanently delete their data from 23andMe can do so via a process accessed through their account settings.

Looking ahead…23andMe says it will continue operating throughout the upcoming bankruptcy and sale process.