Turmoil at 23andMe!What Should I Do? BANKRUPTCY UPDATE
| UPDATE: 23andMe filed for Chapter 11 bankruptcy on Monday 24 March 2025. My plan: I have already downloaded my data from 23andMe – I do this for EVERY DNA testing platform I use. For now, it is business as usual at 23andMe – they are still selling tests and processing results. There is no need to PANIC and delete everything especially if you have matches at 23andMe. I intend to monitor the news about 23andMe and decide if I need to delete my data, my sample, and my account in the future. See the updates below. Recent reports have highlighted significant challenges facing the personal DNA testing company, 23andMe, following a major data breach and the company’s inadequate response. In the wake of a 2023 cyberattack and ensuing boardroom turmoil, customers are understandably concerned about the company’s future. If you have a 23andMe profile, it is crucial to take steps to protect your personal information, especially given the potential for the company to be sold, taken private, or face bankruptcy. Turmoil at 23andMe: Key Events in 23andMe’s Recent Challenges Data Breach (2023): Hackers compromised personal and genetic data from 6.9 million 23andMe users, with Ashkenazi Jewish and Chinese customers specifically targeted. This breach raised serious privacy concerns. Lawsuit Settlement: 23andMe settled a class-action lawsuit related to the breach, agreeing to a $30 million settlement and providing affected users with three years of security monitoring. Financial Losses: In Q2 2024, the company reported a $69.4 million loss on $40.4 million in revenue, further compounding its financial struggles. Stock Decline: After an initial public offering at $10 per share, 23andMe’s stock dropped to below $1 by late 2023.Efforts to Go Private: CEO Anne Wojcicki has been exploring the option to take the company private in response to these financial difficulties. NEW! 23andMe Files Chapter 11 Bankruptcy: 23andMe filed for Chapter 11 bankruptcy (reorganization) on Monday 24 March 2025. Per press release “23andMe Initiates Voluntary Chapter 11 Process to Maximize Stakeholder Value Through Court-Supervised Sale Process” dated Sunday 23 March 2025, the goal is for 23andMe to reorganize and find a buyer to take over the company. Turmoil at 23andMe: Recommended Actions for 23andMe Customers If you are a 23andMe customer, it is advisable to take proactive steps to secure your personal data: Download Your DNA Data: Regardless of the platform—whether 23andMe, AncestryDNA, FamilyTreeDNA, or MyHeritage DNA—you should already have downloaded a copy of your DNA data. For 23andMe users, ensure that you download the .zip file containing your genetic information. Consider Deleting Your Account: If you lack confidence in 23andMe’s long-term viability or wish to prevent your DNA data from being sold as a corporate asset, you may choose to request the deletion of your account. This action would erase all genetic reports and terminate any paid membership you hold with the company. Turmoil at 23andMe: Industry Insights and the Future of 23andMeHaving observed the DNA and genealogy industry for over 15 years, I offer the following perspectives: Unlikely Acquisition by Competitors: It is improbable that major players such as Ancestry, FamilyTreeDNA, or MyHeritage would acquire 23andMe’s assets. While both Ancestry and MyHeritage have previously attempted to enter the health-related DNA market, they were unsuccessful. Additionally, 23andMe is the only company among the “Big Four” to secure FDA approval for certain health reports. If acquired, any buyer would likely need to reapply for FDA approval. Likelihood of Going Private: Given her financial resources and personal investment in the company, it is plausible that Anne Wojcicki may take 23andMe private, continuing her long-standing commitment to the company’s mission. Potential Failure of 23andMe: Should 23andMe exit the market, it could be seen as a fitting outcome given the company’s poor handling of the 2023 data breach. The company’s response, which appeared to shift blame to its users, has resulted in widespread dissatisfaction among its customer base. NEW! Bankruptcy: CEO Anne Wojcicki has resigned from the 23andMe board in order to put together a possible acquisition of the company. Over several months Wojcicki has tried to convince the board to look for a buyout partner but was voted down each time. Resigning allows her the freedom to pursue a buyout. Resources NEW! 23andMe Initiates Voluntary Chapter 11 Process to Maximize Stakeholder Value Through Court-Supervised Sale Process – 23andMe https://investors.23andme.com/news-releases/news-release-details/23andme-initiates-voluntary-chapter-11-process-maximize NEW! 23andMe Files for Bankruptcy – What You Need to Know! – DNA Explained https://dna-explained.com/2025/03/25/23andme-files-for-bankruptcy-what-you-need-to-know/NEW! Download 23andMe Matches to Spreadsheet – GenealogyExplained https://www.genealogyexplained.com/json-to-csv-converter-for-23andme-matches/Accessing Your Raw Genetic Data – 23andMe https://customercare.23andme.com/hc/en-us/articles/212196868-Accessing-Your-Raw-Genetic-Data 23andMe’s board quits en masse – LinkedIn https://www.linkedin.com/news/story/23andmes-board-quits-en-masse-6152900/ 23andMe is in trouble. What happens to all the DNA data? – NPR https://www.npr.org/2024/09/25/nx-s1-5123633/23andme-is-in-trouble-what-happens-to-all-the-dna-data 23andMe is up for sale – Where will our DNA go? – WGN Radio https://wgnradio.com/lisa-dent/23-me-up-for-is-up-sale-where-will-our-dna-go/ Hereditary Hack: 23andMe’s $30M Settlement After 6.4 Million Stolen DNA Profiles Put Up for Sale on Dark Web – Law, Inc. https://www.lawinc.com/23andme-settlement-dna-data-breach Requesting 23andMe Account Closure – 23andMe https://customercare.23andme.com/hc/en-us/articles/212170688-Requesting-23andMe-Account-ClosureWhat Happened to 23andMe? – CNN https://www.cnn.com/2024/09/20/business/23andme-board-resigns-nightcap/index.htmlBuy AncestryDNA on Amazon – LOWEST PRICE EVER plus FREE SHIPPING!Amazon Spring Sale is off with a BLOWOUT sale – save 61% on AncestryDNA and FREE SHIPPING for Amazon Prime Members! Click HERE or the image below to get started! |
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