23andMe Board Crisis: A Troubling Sign for the Company's Future

If you’re a retail investor in 23andMe, you might be feeling a bit uneasy after all the board resignations three days ago. As an observer, I've been following this story with a mix of curiosity and concern. The resignation of all seven independent directors is a pretty big deal, and it's got me thinking about what's going on behind the scenes.

Article: Every single member of the board just resigned from DNA tester 23andMe

Now, we know the CEO, Anne Wojcicki, is pushing to take the company private. But from what I've read, her buyout proposals aren't cutting it for the independent directors. They're saying her offers don't provide a premium over the current stock price and lack committed financing. That's a pretty big red flag if you ask me.

The directors also hinted at serious disagreements with Wojcicki over the company's strategic direction.?That's never a good sign when the board and CEO can't see eye-to-eye. It makes me wonder if Wojcicki is looking out for the best interests of shareholders or if something else is going on that most people aren't privy to.

And let's not forget, that 23andMe's stock has tanked over 96% in the last five years. That's a pretty dismal performance, and it seems to me at least, like the board and CEO have been dragging their feet when it comes to fixing the problems they might be facing. Where's the urgency to preserve shareholder value?

Now, I get that going private might be a way for 23andMe to escape the pressures of the public market and focus on its long-term goals. But if the CEO's buyout plan is half-baked and the board is jumping ship, that's a major red flag for investors. Wojcicki may believe privatization is the best path forward, but she's got to convince the shareholders first.

At the end of the day, 23andMe is a company that's supposed to be all about transparency and empowering people with their genetic data. But this whole situation feels pretty opaque and disempowering for investors. It's clear in this case, the board and CEO need to get on the same page and put shareholder interests first.

I'll be keeping a close eye on how this all plays out. If you're a 23andMe investor, I'd recommend doing your research and making sure your voice is heard. From where I sit, this company's got some serious soul-searching to do.

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Additional Reading

1. 23andMe directors resign as the CEO of the genetic-testing company aims to take it private. AP News (2024).
2. All 23andMe board members but CEO resign over no adequate buyout offers. The Guardian (2024).