23andMe’s future growing dimmer by the day. Last week before Friday, 23andMe seemed to have a fighting chance. The 20 February Schedule 13D filing proposed a take-private offer for $2.53 per share, or $74.7 million, a small premium above their Nasdaq CM trading price, with CEO and controlling shareholder Anne Wojcicki joined by investor New Mountain Capital (NMC) [TTA 27 Feb]. Evidently that offer went sideways before the board of directors’ Special Committee could even consider it. By Friday 28 February, a week later, New Mountain withdrew from the acquisition bid for unspecified reasons. On Sunday 2 March, Ms. Wojcicki offered instead to the board her non-binding all cash bid of $0.41, or about $12 million. This would acquire the current outstanding shares not owned by Ms. Wojcicki (or not rolled over by current shareholders). Amended Schedule 13D
It took about “24 little hours” for the 23andMe board and their advisers to unanimously reject that offer, stating that at $0.41, it represented an 84% decrease to the prior $2.53 offer made with New Mountain Capital. Release. It is one cent above Anne Wojcicki’s offer made back on 31 July 2024, which matched the price of the shares at that time. No one involved had any comments. (Share price today: $1.37)
So the genetic data/testing/telemedicine company returns to Square Zero. One can only speculate why NMC withdrew so quickly, on what they saw after a bid that made them run, not walk, to the exit. One wonders how Anne Wojcicki would offer not only a misfire of a bid, but also counter with a ridiculously low bid that she had to know would be rejected. Then again, one wonders what the board’s options really are, given the parlous state of their cash reserves. Will this be the second board that throws up their six hands and resigns? CNBC, Business Insider
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