23andMe’s Founder Buys Back Company in Bold Nonprofit Turn

The sale includes 23andMe’s core genetic testing and research services and Lemonaid Health, their telehealth subsidiary. The deal still needs approval from the U.S. Bankruptcy Court for the Eastern District of Missouri, which is expected to hold a hearing on June 17.

“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 following the announcement.

The company, once a Silicon Valley darling, had fallen on hard times. In March, 23andMe filed for Chapter 11 bankruptcy protection after years of financial struggles and a failed transition from direct-to-consumer testing into drug development. That same day, Wojcicki stepped down from her role as CEO, signaling a major shift in the company’s direction. Her exit followed the resignation of all seven of 23andMe’s independent board directors in September 2024, citing frustration with her "strategic direction" and concerns over plans to take the company private.

Things only worsened in November, when 23andMe laid off around 200 employees—roughly 40% of their workforce—and halted their therapeutics program.

Once valued at $6 billion, 23andMe had built their brand on saliva-based DNA testing kits that allowed people to explore ancestry and health risks. But by 2024, revenue had fallen sharply, and the company’s stock price had plummeted. Analysts pointed to weakening consumer interest, failed attempts at recurring revenue models, and a devastating data breach in 2023 that exposed the personal and genetic data of nearly 7 million users.

Those concerns took center stage in early June, when privacy fears exploded into a legal firestorm. On June 10, 27 U.S. states and the District of Columbia filed a lawsuit in bankruptcy court to block the sale of genetic data without customer consent. 

That same day, at a hearing before the House Committee on Oversight and Government Reform, 23andMe interim CEO Joseph Selsavage told lawmakers that 1.9 million customers—about 15% of the company’s total base—had requested deletion of their genetic data following the bankruptcy filing.

The case became even more complicated when Regeneron Pharmaceuticals, which had offered $256 million to acquire most of 23andMe’s assets, announced that they would not raise their bid. Eventually, TTAM’s $305 million bid ultimately won out. 

As controversy grew, customers feared their DNA could end up in the hands of a buyer more interested in pharmaceutical profit than personal privacy. Some researchers warned of risks tied to genetic profiling for commercial gain, while others emphasized how such data could be used for good, like developing personalized medicine.

Still, the biggest question remained: would a new owner respect user privacy?

In the same news release announcing the buyback, Wojcicki directly addressed those concerns: “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.”

TTAM stated that they would continue to comply with existing 23andMe privacy policies, including customers’ rights to delete data or opt out of research participation.

The court will still have the final word when they review the deal's terms. If approved, the sale could mark a rare second act for a company that helped popularize personal genomics and sparked one of the biggest debates over data privacy in the digital age.