23andMe files for bankruptcy, fueling privacy concerns

I have another bankruptcy story to report today, 23andMe Files For Bankruptcy And CEO Anne Wojcicki Exits—Here's What We Know from Forbes.

Genetic testing company 23andMe filed for Chapter 11 bankruptcy protection to initiate the process of selling off its assets, while the troubled firm’s co-founder Anne Wojcicki—who was attempting to take 23andMe private—stepped down from her role with the intent to become an outside bidder for the asset sale.

CNBC explained how the company got to this point as it answered What Happened To 23andMe?

23andMe was one of the hottest startups of the 2000s, once valued at $6 billion. The company’s DNA test kits became a viral sensation and powerful research tool for those hoping to learn more about their ancestry and health. But today, it has lost 98% of its value and is on the verge of being delisted from the Nasdaq after all independent board members resigned, citing frustration with founder Anne Wojcicki’s “strategic differences” in her vision for the company. Meanwhile, 23andMe is sitting on the world’s largest genetic database that it once hoped to leverage for drug development. So what will happen to all that DNA data, and can Wojcicki save the company from collapse by taking it private? Watch the video to find out more.

On the one hand, the situation went from bad to worse since CNBC uploaded the video on October 20, 2024; they didn't even mention bankruptcy as a possibility five months ago. On the other, 23andMe's data apparently became more useful since 2013, the only other time I've mentioned the company, when I quoted an article about a lawsuit claiming the test results were "meaningless."

Forbes and CNBC emphasized the parts of the story important to their readers and viewers, who are investors and others interested in business and the economy. For news more important to consumers, including 23andMe's customers, I turn to NewsNation asking 23andMe files for bankruptcy: What are customers' rights?

23andMe has filed for Chapter 11 bankruptcy, and CEO Anne Wojcicki, whose takeover bid failed, has stepped down. The genetic testing company has more than 15 million customers' genetic data — and California Attorney General Rob Bonta is warning users to purge their data sooner rather than later.

Laura Coordes, a law professor at Arizona State University, joins “NewsNation Now” to discuss what customers should do with their data.

My wife and I bought a pair of test kits before the pandemic, but never turned in our samples and paid the rest of the fee. On the one hand, I'm annoyed that we wasted our money. On the other, we don't have to worry about protecting our data; 23andMe doesn't have it!

At this point, I would write that I would wait for Company Man and Bright Sun Films to cover the company, but I don't have to, as Company Man already asked The Decline of 23andMe...What Happened?

23andMe was once considered one of the most promising companies, but today, it is falling apart. This video attempts to explain the reasons behind the decline.

Here's Company Man Mike's list:


Company Man Mike added the difference in motivations between 23andMe and its customers as a factor to the other four reasons, which Forbes, CNBC, and NewsNation all covered. The company wanted the results to be used to improve their customers' health, while most of the customers were interested in the entertainment value of the results, including learning more about their ancestry. Procrastinating over deciding to pay the premium for the health results was what led to my wife and I not paying for the test at all; we were more interested in our ancestry. Maybe we'll pay for an Ancestry.com test and actually take it.

Now all I have to do is wait to see if Jake Williams of Bright Sun Films covers 23andMe. In the meantime, stay tuned for the first retrospective of the 14th year of Crazy Eddie's Motie News, stats.