23andMe Founder Repurchases Company in Bankruptcy Auction
▼ Summary
– Anne Wojcicki won the bankruptcy auction for 23andMe with a $305 million bid through her non-profit, TTAM Research Institute, acquiring assets without liabilities.
– 23andMe filed for bankruptcy in March after rejecting previous go-private offers from Wojcicki, and Regeneron initially won with a $256 million bid in May.
– TTAM accused 23andMe of prematurely ending the May auction, claiming it could have submitted a higher bid but was denied due to unverified financing.
– TTAM later secured backing from a Fortune 500 company with significant financial resources, enabling its higher bid in the renewed auction.
– Regeneron declined to outbid TTAM’s final offer and will receive a $10 million termination fee as per court filings.
Anne Wojcicki has successfully regained control of 23andMe through a bankruptcy auction, marking a significant turnaround for the genetic testing pioneer. Her nonprofit organization, TTAM Research Institute, secured the company’s assets with a $305 million bid, outmaneuvering pharmaceutical giant Regeneron in a competitive bidding process.
The deal allows Wojcicki to reclaim 23andMe free of existing liabilities, providing a fresh start for the struggling company. Earlier this year, 23andMe filed for Chapter 11 bankruptcy after rejecting multiple private offers from its founder. Regeneron initially appeared victorious in May with a $256 million bid, but TTAM challenged the outcome, alleging the auction closed prematurely before it could submit a higher offer.
Court documents reveal TTAM accused 23andMe’s advisors of dismissing its bids over financing concerns, despite the nonprofit’s claims of backing from a Fortune 500 company with $400 billion in market value and $17 billion in cash reserves. The dispute led to a renewed auction Friday, where TTAM’s final bid surpassed Regeneron’s offer.
Regeneron, opting not to counter, will receive a $10 million termination fee as part of the settlement. The resolution clears the path for Wojcicki to steer 23andMe’s future, potentially revitalizing the brand that popularized direct-to-consumer DNA testing. The outcome underscores her determination to retain ownership of the company she launched nearly two decades ago.
(Source: Ars Technica)
