This US Start-Up's Entire Board Of Directors Resigned On The Same Day, CEO Says...

In a shocking move, the entire board of directors at a Francisco-based DNA testing company 23andMe resigned in September, following a heated month-long battle over co-founder and CEO Anne Wojcicki's plans to take the company private. As a result, Ms Wojcicki, who controls 49.75% of the voting rights, remains the sole board member of the San Francisco-based company. In a public letter, the departing board members, including YouTube CEO Neal Mohan and Sequoia Capital's Roelof Botha, expressed their continued belief in 23andMe's mission to personalise healthcare through genetic data. However, they revealed a deep-seated disagreement with co-founder and CEO Anne Wojcicki's strategic vision for the company.

In her first on-the-record interview with Fortune since the mass resignations, 23andMe CEO Anne Wojcicki expressed confidence in navigating the company's challenges, acknowledging the complexity of the situation.

Notably, Ms Wojcicki and its board of directors had been at odds for months. The disagreement centred on her plan to take the company private through a buyout. This proposal came as 23andMe's valuation plummeted from $6 billion in 2021 to under $150 million.

The company has faced significant challenges since its 2021 initial public offering (IPO). Despite debuting at $10 (Rs 840) per share, the company's stock has struggled to regain momentum, failing to reach even a $1 (Rs 84) valuation in 2024. Following the mass resignation of its board members, the stock price plummeted to a record low of $0.30 (Rs 25).

The company's valuation has also taken a hit, dropping dramatically from $6 billion in 2021 to under $150 million. Additionally, 23andMe has yet to turn a profit, with slowing sales and a massive data breach exacerbating privacy concerns. Its drug discovery business, which was draining company resources, was ultimately shut down.

Amidst these struggles, CEO Anne Wojcicki proposed a plan to take 23andMe private. However, the board rejected her initial proposal, citing the lack of a premium offer to shareholders. 

As the majority voting rights holder, Anne Wojcicki's control ultimately led to a stalemate with the board, resulting in the resignation of all members. However, Ms Wojcicki said she sees her extra voting rights as recognition of her dedication to the company's success.

''I've always said ever since the very beginning, I don't need to be in charge. There's no ego for me. I care about the vision and the mission,'' she told Fortune. 

''I'm sure we'll spend a lot of time reflecting about what we could have done in a different way.  I think we can navigate and land this plane but it is absolutely complicated,'' she added.

A former 23andMe leader said he was not surprised by the board's resignation, revealing a different side to Anne Wojcicki's leadership. While charming in public, Ms Wojcicki was described as stubborn and controlling behind closed doors. Former senior employees also pointed to her leadership shortcomings and power struggles as major issues that surfaced after the company went public.