23andMe Board Resigns in New Blow To DNA-Testing Company (msn.com) 14
All seven independent directors of DNA-testing company 23andMe resigned Tuesday, following a protracted negotiation with founder and Chief Executive Anne Wojcicki over her plan to take the company private. WSJ: It is the latest challenge for 23andMe, which has struggled to find a profitable business model. The stock price fell to $0.30 per share after hours on Tuesday. At that price the company is worth less than the cash on its balance sheet. In a letter addressed to Wojcicki, the directors wrote that "after months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders."
It is very rare for a publicly traded company to see so many directors resign simultaneously. The board members wrote that they differ with Wojcicki on the "strategic direction for the company" and because of her voting power, it was best that they resign. Wojcicki controls 49% of 23andMe votes, giving her a level of control that blocked board members from shopping the company to other potential bidders. She is the only remaining board member after the resignations. Further reading: 23andMe's Fall From $6 Billion To Nearly $0 (January 2024)
It is very rare for a publicly traded company to see so many directors resign simultaneously. The board members wrote that they differ with Wojcicki on the "strategic direction for the company" and because of her voting power, it was best that they resign. Wojcicki controls 49% of 23andMe votes, giving her a level of control that blocked board members from shopping the company to other potential bidders. She is the only remaining board member after the resignations. Further reading: 23andMe's Fall From $6 Billion To Nearly $0 (January 2024)
"Buddy, buddy: You're the damn devil, remember?" (Score:3)
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The new name (Score:5, Informative)
After losing all seven of the other directors, and applying the law of subtraction, the company shall be known as "16 and Me".
More seriously, the boards' hands were pretty much tied by the CEO's grab.
They are there to evaluate independently, including (perhaps especially!) offers to buy the company.
The board turned down her offer, as it offered no premium over current share price, and no arranged financing. Put differently, there was nothing any sane person could approve.
They gave her extra time, and she still hasn't come up with either a premium or funding.
It's apparently a grab to get the company for almost nothing, falling the loss of nearly all of its value.
It might be time for the other shareholders to petition for a receivership.
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They are there to evaluate independently, including (perhaps especially!) offers to buy the company.
The board turned down her offer, as it offered no premium over current share price, and no arranged financing.
The important question is whether there were other offers. An offer to buy out the other shareholders at the current share price is a good deal if nobody else wants it, because chances are, the shares will only go down further if the company's board can't figure out how to agree and get things done.
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After losing all seven of the other directors, and applying the law of subtraction, the company shall be known as "16 and Me".
Isn't that Matt Gaetz's company?
Musical Chairs (Score:2)
This is like the game of musical chairs. But instead of chairs, there are shares of stock. One, two, three, not it! *everyone rushes to sell and exit their position as director*
Hostile Takeover? (Score:2)
The market cap is only $169M.
You guys wanna chip in and we'll just take all the cash and give the IP to a University?
Schadenfreude (Score:3)
Sometimes, the founder of a successful business venture has a good head for the management side of affairs, but sometimes not so much.
Wojcicki controls 49% of the voting shares, and presumably had a large say in the appointment process of these seven defecting Board Members... none of whom deigned to stay in support of her. She must be a real treat.
It could probably be happening to a more deserving company, but not by much.
CEO Must be Truly Terrible (Score:2)
> The stock price fell to $0.30 per share after hours on Tuesday. At that price the company is worth less than the cash on its balance sheet.
You know you're doing a terrible job when the market thinks you're less competent than than a robot that blindly sells every asset you own.
Re:CEO Must be Truly Terrible (Score:4, Interesting)
> The stock price fell to $0.30 per share after hours on Tuesday. At that price the company is worth less than the cash on its balance sheet.
You know you're doing a terrible job when the market thinks you're less competent than than a robot that blindly sells every asset you own.
In 2003, AAPL [cnn.com] was selling at only about a 36% premium over cash on hand, which is almost as absurd as negative company value.
The real news story (Score:2)
Your DNA isn't actually that valuable.
great idea (Score:2)
A great idea, except they forgot there would be no return customers.