23andMe Board Members Step Down Amid Disagreements with CEO

In a recent development, key independent directors of 23andMe have announced their resignation following a disagreement with CEO Anne Wojcicki regarding the company’s strategic direction. This decision was made public through a resignation letter addressed to Wojcicki, in which the directors expressed their unwillingness to engage in a prolonged conflict with her over the company’s future.

The tension arose shortly after 23andMe, a personal genomics and biotechnology company, decided to go private. In April, the company made a filing with the Securities and Exchange Commission, signaling its intent to leave the public market. At that time, the stock price had plunged below $1 per share, significantly lower than its initial public offering price of $10.

CEO Anne Wojcicki subsequently proposed a buyout offer at 40 cents per share. However, this move was met with resistance from a special committee of the board, which was responsible for reviewing the proposal. The independent directors’ resignation emphasizes their belief that their departure would serve the best interests of the shareholders, given the discord between their views and Wojcicki’s leadership.

In an internal memo acquired by CNBC, Wojcicki reiterated her stance that taking the company private was in its long-term interest. Additionally, she assured employees that the company would promptly seek new independent directors to fill the board positions left vacant by the resignations.

At the close of trading on Wednesday, 23andMe’s share price was approximately 34 cents, with a market capitalization of $172.4 million. The company initially went public in 2021 through a merger with a special purpose acquisition company.