Latest news with #TTAM
Yahoo
a day ago
- Business
- Yahoo
From $6B Valuation to Bankruptcy to Rescue: Wojcicki Reclaims 23andMe for $305M
Anne Wojcicki, co-founder and former CEO of 23andMe, will regain control of the embattled genetic testing company through a $305 million acquisition by her nonprofit TTAM Research Institute, the company announced on Friday. The deal marks the final stage in a bidding contest that began after 23andMe filed for Chapter 11 bankruptcy in March. According to the company, TTAM will acquire substantially all of 23andMe's assets, including its Personal Genome Service, Research Services, and Lemonaid Health, a telehealth subsidiary acquired in 2021. The purchase follows a previous winning bid from Regeneron Pharmaceuticals totaling $256 million, announced in May. However, TTAM submitted a higher unsolicited offer, prompting a reopened auction earlier this month. According to court documents cited by The Wall Street Journal, Regeneron declined to increase its bid, due to the company's remaining valuation. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Founded in 2006, 23andMe gained early popularity for its at-home DNA testing kits, which provide customers with insights into their ancestry and potential health risks. The company went public in 2021 through a special purpose acquisition company merger, reaching a peak valuation of nearly $6 billion. But after struggling to create a sustainable subscription model and weathering a 2023 cyberattack that exposed the personal data of nearly 7 million users, 23andMe saw its value decline. The company said it laid off about 40% of its workforce in November and halted therapeutic R&D programs. Wojcicki stepped down as CEO in March, shortly before the bankruptcy filing, to qualify as an independent bidder. Seven independent board members resigned in September, citing concerns over her leadership and privatization efforts. Trending: Maximize saving for your retirement and cut down on taxes: . Although TTAM's $305 million offer has been accepted, the deal is not yet finalized. Approval from the U.S. Bankruptcy Court for the Eastern District of Missouri is still pending, with a hearing scheduled for June 17, according to Friday's statement. Further complicating the process is a lawsuit filed by 28 state attorneys general led by New York's Letitia James, who say that the sale could violate consumer privacy rights by transferring genetic data without explicit consent. "23andMe cannot auction millions of people's personal genetic information without their consent," James said. According to the Journal, a court-appointed privacy ombudsman said in a report filed last week that he could not conclude the sale of genetic data was consistent with 23andMe's privacy policies. The report also flagged that TTAM's nonprofit status could exempt it from certain data-protection laws, raising further privacy concerns around the deal. During a House Oversight Committee hearing on June 10, interim CEO Joseph Selsavage said that 1.9 million people—about 15% of 23andMe's customers—had requested deletion of their data since the bankruptcy filing."I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand, and benefit from the human genome. We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish," Wojcicki posted on LinkedIn. In Friday's announcement, TTAM said it would honor 23andMe's existing privacy policies, allowing users to delete their data and opt out of research participation, according to the release. It also plans to establish a Consumer Privacy Advisory Board within 90 days of the deal's closing. Read Next: Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article From $6B Valuation to Bankruptcy to Rescue: Wojcicki Reclaims 23andMe for $305M originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Anne Wojcicki's bid to buy back 23andMe may not end legal fight over DNA customer data
Anne Wojcicki's winning bid to reclaim control of 23andMe (MEHCQ) doesn't necessarily end the fight over what happens to the DNA of 15 million people collected by the bankrupt consumer genomics company. A nonprofit controlled by Wojcicki, TTAM Research Institute, has outbid large-cap drugmaker Regeneron (REGN) amid mounting opposition to a proposed sale. Wojcicki was the co-founder and former CEO of 23andMe. A hearing to discuss approval of the purchase is set for Wednesday. A bankruptcy judge's approval is required to go ahead with the transaction. The winning bid came days after members of Congress questioned Wojcicki about the fate of the DNA data. More than half of the states across the country sued 23andMe's bankruptcy estate to stop the sale of its consumers' biological samples, health-related traits, and medical records. On Tuesday, regulators from the UK and Canada fined 23andMe $2.3 million for a data breach in 2023 that exposed DNA on thousands of customers and health, race, gender, and family information on 7 million people. The regulators said they had been in contact with the US Trustee's office that is overseeing 23andMe's bankruptcy. Brian Focht, a data privacy lawyer, said the sensitivity of the data is a good reason for the court and consumers to view TTAM's proposal with caution. "This is information that's immutable. It's a permanent part of your identity," Focht said. "You can't change the way that you can change almost everything, including your Social Security number, your name, and your bank account number." Although TTAM's ownership of the data may resolve some of the privacy concerns, a consumer watchdog report filed with the bankruptcy court last Wednesday said a sale of 23andMe to any buyer, including TTAM, creates unique challenges. That's because it involves the possible transfer of consumer data that is "significantly more sensitive" than consumer data involved in prior bankruptcy cases. While Wojcicki has pledged to effectively run TTAM as the same type of business as 23andMe, Focht noted that she was in charge during that period in 2023, when 23andMe disclosed privacy and cybersecurity lapses. "So it's probably a bit foolishly optimistic to think that her re-takeover of the company will somehow make all the concerns disappear," he said. The bankruptcy court's watchdog expressed the same concern in a report filed Wednesday with the court. Because TTAM is a nonprofit, it said, it could possibly operate outside the scope of many data protection laws, potentially creating a "privacy and security enforcement and accountability vacuum." "That's a legitimate concern," said Gary Kibel, a privacy and data security partner with the law firm Davis+Gilbert, because most state consumer privacy laws do not apply to nonprofit entities. 23andMe did not respond to a request for comment on the proposed bid. The question of 23andMe's right to sell the data has not been tested in court. And because it is a direct-to-consumer company, as opposed to a healthcare provider, the data is not protected by federal laws, such as HIPAA. Nineteen states do have laws that require a company to obtain consent to process sensitive customer information. Some states have adopted stand-alone consumer health data privacy laws that create a higher standard of consent for the transfer of consumer health data to third parties, Kibel said. A regulator could consider whether a transfer of sensitive consumer data complies with those state laws. Outside of those state rules, Kibel said, every state has "UDAAP" laws that protect consumers against unfair or deceptive acts and practices. The US Federal Trade Commission has made it clear that bankruptcy does not automatically entitle a company to transfer consumers' personal information. Last week, 28 state attorneys general and the attorney general for the District of Columbia filed complaints in 23andMe's bankruptcy case claiming that the company's assets don't include its consumers' DNA and other personal information. And that's especially for those who signed agreements with the company prior to June 8, 2022, when terms stated that "23andMe will not sell, lease, or rent your individual-level information to a third party for research purposes without your explicit consent," the states alleged. 23andMe later amended its privacy policy to include the transfer of consumer data in the event of a bankruptcy. The privacy lawyers said that whether the policy change holds up under a challenge would depend on whether or not state law prohibits it. Daniel Gielchinsky, a bankruptcy lawyer with DGIM Law, said, "In light of the [watchdog's] report and the objections filed by the various states, it is likely that the bankruptcy court would not give [TTAM] the same rights in the data that 23andMe currently has." Another wrinkle for the bankruptcy court, according to Focht, is that the state law that applies to each of 23andMe's consumers depends on where they currently live and not where they lived at the time they consented to 23andMe's terms. The watchdog's report raised a third concern over TTAM's purchase of 23andMe. It said the company's telemedicine subsidiary, Lemonaid Health, would potentially be included in a sale, and the relationship between the companies could prove complicated given the "evolving legal landscape for personal health records and the sensitivity with health data." Lawmakers have expressed concern that foreign nations could gain access to Americans' genetic data. In 2015, 23andMe accepted a $10 million investment from WuXi Healthcare Ventures, which had ties to the Chinese Communist Party. The company has since been bought by Frontline BioVentures, which formed a new healthcare investment venture known as 6 Dimensions Capital. During testimony before the House Oversight Committee on Wednesday, Wojcicki promised that 23andMe would not sell customers' DNA data to foreign adversaries, specifically China, Russia, and North Korea. Uttara Ananthakrishnan, a professor of information systems at Carnegie Mellon University, said use of genetic data should be held to a higher level of consent than the consent required for other data, such as credit scores, search data, and location data. "I don't think people have realized the seriousness of this all, because it's really novel," Ananthakrishnan said. "Thirty years down the line, we don't know what's going to happen with this data, what kind of new technologies are going to come in. You might have [an AI model] trained on really granular genetic data that can predict job outcomes, insurance." But Kibel said, "Maybe this spurs Congress to realize, 'You know what? We need a federal comprehensive consumer privacy law, because we don't have one.'" Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on X @alexiskweed. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Entrepreneur
5 days ago
- Business
- Entrepreneur
23andMe Cofounder Anne Wojcicki Wins Bid, Takes Back Company
Meanwhile, dozens of states are suing 23andMe to block the sale of DNA data collected by the company. A nonprofit headed by Anne Wojcicki, the 51-year-old co-founder and former CEO of genetic testing startup 23andMe, is the new buyer for 23andMe's assets. 23andMe stated on Friday that Wojcicki's nonprofit was its new buyer, with a bid of $305 million. The nonprofit, called TTAM after the first letters of 23andMe, won a bid to acquire the startup on Friday following its bankruptcy filing in March. Related: 23andMe to Pay $30 Million Settlement After Massive Hack. Here's Who's Eligible to Make a Claim. TTAM replaces biotech company Regeneron as 23andMe's buyer. Last month, Regeneron won the bidding during the bankruptcy auction to purchase 23andMe for $256 million. Wojcicki reopened the bidding earlier this month with the offer through TTAM — and won. Regeneron told CNN Business that it decided not to make a bid to top TTAM's offer "based on our assessment of 23andMe's remaining value." TTAM's bid still needs to be approved by the bankruptcy court before it becomes official. A hearing is scheduled for Tuesday. The bid also faces legal hurdles. Twenty-seven U.S. states and the District of Columbia filed a joint lawsuit last week to block the sale of genetic data by 23andMe without approval from customers. The lawsuit, led by New York Attorney General Letitia James, alleges that biological data is too sensitive to be sold without each person's consent. "23andMe cannot auction millions of people's personal genetic information without their consent," James stated in a press release. 23andMe customers use saliva-based testing kits to test their DNA to learn more about their genetic history and connect with relatives. The company has collected DNA samples from over 15 million people. Nearly two million 23andMe customers, or 15%, have deleted their genetic data from 23andMe's database since March, per The Wall Street Journal. 23andMe founder Anne Wojcicki. Photo byWojcicki co-founded 23andMe in 2006 and submitted multiple failed proposals to buy the company as CEO, one in July 2024 and another in February, that would have valued the company at $74.7 million. She stepped down as CEO in March as the company filed for Chapter 11 bankruptcy, stating in an X post at the time that she had resigned in order to be "in the best position" to bid for ownership of the company. Related: 23andMe DNA Technology Helps Family Find Kidnapped Daughter After 51 Years 23andMe faced a significant decline in market value after a massive data breach in 2023 that compromised the data of seven million users. The incident diminished consumer trust and reduced demand for 23andMe's genetic testing products. In September, 23andMe agreed to settle a lawsuit related to the breach for $30 million. The startup has had difficulty finding a profitable business model. Customers use 23andMe's kits once and don't have to order another one, per Reuters. In November, 23andMe laid off 40% of its workforce, or nearly 200 people. The startup, which went public at a $3.5 billion valuation in 2021, was worth around $110 million at the time of writing.
NBC News
14-06-2025
- Business
- NBC News
Anne Wojcicki to buy back 23andMe and its data for $305 million
Anne Wojcicki, the co-founder and former CEO of 23andMe, has regained control over the embattled genetic testing company after her new nonprofit, TTAM Research Institute, outbid Regeneron Pharmaceuticals, the company announced Friday. TTAM will acquire substantially all of 23andMe's assets for $305 million, including its Personal Genome Service and Research Services business lines as well as telehealth subsidiary Lemonaid Health. It's a big win for Wojcicki, who stepped down from her role as CEO when 23andMe filed for Chapter 11 bankruptcy protection in March. Last month, Regeneron announced it would purchase most of 23andMe's assets for $256 million after it came out on top during a bankruptcy auction. But Wojcicki submitted a separate $305 million bid through TTAM and pushed to reopen the auction. TTAM is an acronym for the first letters of 23andMe, according to The Wall Street Journal. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome,' Wojcicki said in a statement. 23andMe gained popularity because of its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The five-time CNBC Disruptor 50 company went public in 2021 via a merger with a special purpose acquisition company. At its peak, 23andMe was valued at around $6 billion. The company struggled to generate recurring revenue and stand up viable research and therapeutics businesses after going public, and it has been plagued by privacy concerns since hackers accessed the information of nearly seven million customers in 2023.
Yahoo
14-06-2025
- Business
- Yahoo
Anne Wojcicki's nonprofit wins bid for genetic testing company 23andMe
A nonprofit controlled by Anne Wojcicki, former chief executive of 23andMe, has won the bidding process to buy the bankrupt genetic testing company. If approved by the court, the sale would put Wojcicki back at the helm of the company she co-founded and previously attempted to take private. 23andMe, which helped popularize at-home DNA test kits and was once valued at $6 billion, declared Chapter 11 bankruptcy in March. The potential sale of the company has raised questions over privacy standards for genetic data, which experts say is uniquely sensitive, immutable and irreplaceable if stolen. Read more: 'People should be worried': 23andMe bankruptcy could expose customers' genetic data More than 11 million customers have given DNA samples to 23andMe, putting a trove of genetic information under the company's control. Wojcicki's nonprofit TTAM Research Institute agreed to comply with 23andMe's privacy policy and committed to adopting additional consumer protections, according to a 23andMe statement. TTAM has offered $305 million to buy 23andMe and the company's assets. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome," Wojcicki said in a statement. "We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data." Read more: States sue to block the sale of genetic data collected by DNA testing company 23andMe New York-based drug maker Regeneron Pharmaceuticals was poised to buy 23andMe before the bankruptcy judge reopened the bidding process to allow for a bid from TTAM. The final round of bidding was conducted by the U.S. Bankruptcy Court for the Eastern District of Missouri and concluded when Regeneron declined to make a higher bid. Dozens of states have filed a joint lawsuit against 23andMe to block the South San Francisco-based company's sale of its customers' genetic data without explicit consent. 'This isn't just data — it's your DNA,' said Oregon Atty. Gen. Dan Rayfield in a statement. 'People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.' Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
