23andMe’s Downward Spiral 9/19/24

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.8 • 56 Ratings

🗓️ 19 September 2024

⏱️ 7 minutes

🔗️ Recording | iTunes | RSS

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Summary

23andMe could get delisted from the Nasdaq after all 7 members of its board resigned this week. CEO Anne Wojcicki is a big name in Silicon Valley but has struggled to find a sustainable business model and shares are 99% off its peak valuation post-SPAC merger. Wojcicki is now hoping to pivot and take the company private by buying back all outstanding shares in what could be seen as a “founders mode” leadership move.

Transcript

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0:00.0	23 and me on the verge of getting D listed now from the NASDAQ due to a shortfall in the number of independent directors on its board.
0:07.5	Deirdre Bosa has more on that story for today's Tech Check.
0:10.0	Morning, D.
0:11.0	Hey, good morning, Carl.
0:12.0	So drama has been unfolding this week.
0:14.1	It's only set to ramp up.
0:15.3	It began with the entire board, all seven independent directors resigning
0:19.7	earlier this week after rejecting founder and CEO
0:22.4	and Wijitsky's buyout offer.
0:24.3	Then the delisting notice from the NASDAQ and now an October 3rd deadline to comply.
0:29.2	Later today an all-hands internal meeting called a feisty where Wajitsky said that she would
0:34.0	update employees as she could. Now all of this could be seen as another chapter in
0:38.0	the Founders Mode narrative that has been sweeping the tech in VC world over the last
0:42.0	few weeks. The idea that founders know best
0:44.8	and they should eliminate managers and outsider advice to steer the company in the right direction.
0:49.7	Wojiskey wants to take back control of her company three years after going public
0:54.2	vice back and she's rejecting outside consultants now she's abandoned by her board.
1:00.0	Filling new seats will not be easy.
1:01.2	The DNA testing company went public vice back in 2021. It has since
1:05.6	lost 99.9% of its value from its $6 billion market cap peak, which makes it all the more surprising perhaps to
1:14.2	note just who was on the board in the first place it's really a who's who of
1:17.8	Titans and tech and health care Sequoia Capitals managing partner roll off
	...

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