23andMe Saved From Collapse After CEO Floats Private Takeover  

DNA-testing company 23andMe soared in the early cash session in New York on news that Anne Wojcicki, the CEO, plans to take the struggling company private after three years on the public markets. The company once sported a $6 billion valuation and has since collapsed to $235 million. 

Wojcicki's big announcement was made in a public filing late Wednesday. The filing stated that she "is considering making a proposal to acquire all of the outstanding shares of 23andMe." 

The filing noted that she would reject any other buyer taking over the company. Her ownership stake is around 20% of the total outstanding shares. This means she controls 49.99% of the company's voting power, making it impossible for anyone to purchase the human genetics and biopharmaceutical company. 

Around 1030 ET, shares of 23andMe jumped 48% to 53 cents a share. On Wednesday, they were at a record low of $0.36. 

Bloomberg data shows 32 million shares, or 10.77% of the float, is short. This leaves room for squeezes. 

In 2021, 23andMe went public through a special-purpose acquisition company sponsored by Virgin Group founder Richard Branson. At the time, the company's value jumped to $5.8 billion. By 2022, the valuation plunged to as low as $1 billion. 

"As sales of its DNA testing kits have slowed in recent years, 23andMe has pivoted to offering subscription products in hopes of creating repeat customers for its consumer business," Bloomberg pointed out. 

There were fears earlier this year that 23andMe would be sold to an overseas PE firm. Thankfully, this has not happened because it would be a national security risk.