23andMe's entire board of directors resign

[WaikikiFirst]

to protest its CEO's plans to take the genetic-testing company private. The stock is down more than 63% so far this year, has lost 95% since its IPO. Now trades at 34 cents. The company has yet to post a quarterly profit since it went public.

CEO proposed in July to take the company private. BoD very unhappy. Outta there. Why? idk. Must be some other personal conflict going on. ,

 

[pedro47]

Name the company. Please

 

[dioxide45]

Name the company. Please

It is in the thread title;

23andMe​

Related article;

Every single member of the board just resigned from DNA tester 23andMe

CEO Anne Wojcicki said the mass exodus left her "surprised and disappointed."

fortune.com

 

[WorldT]

Would they hire me? I am interested in the job

 

[1Kflyerguy]

It seems one of the main problems with the plan to take the company private, is that while Wojcicki submitted a plan in July, there is no financing lined up, no due diligence done etc... Unfortunately the company seems to be adrift with no solid plans for getting back on track..

 

[WaikikiFirst]

no financing lined up, no due diligence done

There has to be more than that. The thing is worth $175 M and the CEO already owns 20% and other insiders prob own another 5-10%. Not much financing needed.
How much "due diligence" needs to be done on YOUR OWN COMPANY? The financiers would do that. If the CEO is refusing to let anybody, incl the BoD, ask questions, that'd do it. But what sense does it make for the CEO to basically scuttle her own plan? Must be something else.
Wait. Don't tell me. The CEO says she had "NO IDEA" they were going to resign?

I would dare guess that the BoD told the CEO the only way they'd vote for this is if she resigned, but she has super-voting shares so there is no way to make a dent in her.

 

[dioxide45]

The problem with this product is that it is niche and you can really only sell it once to a person. While they might be able to attract a bigger market, people see problems with the product they sell. The data leak didn't help them all that much either.

 

[VacationForever]

They have never made a profit. It's hard to take it private with outside investors since it's still waiting to "Show Me The Money!".

 

[MULTIZ321]

EVERY MEMBER OF 23ANDME'S BOARD ЕXСЕРТ ТНЕ СЕО JUST RESIGNED IN DISGUST

Every Member of 23andMe's Board Except the CEO Just Resigned in Disgust

Nearly the entire board of directors for 23andMe has resigned — a move that apparently was news to its overly-optimistic chief executive.

futurism.com

Richard

 

[DrQ]

The problem with this product is that it is niche and you can really only sell it once to a person. While they might be able to attract a bigger market, people see problems with the product they sell. The data leak didn't help them all that much either.

Actually, they are harvesting DNA that can be sold to other companies for research and other purposes.

 

[dioxide45]

Actually, they are harvesting DNA that can be sold to other companies for research and other purposes.

Goes along the lines of "people see problems with the product they sell".

 

[TolmiePeak]

Actually, they are harvesting DNA that can be sold to other companies for research and other purposes.

Who on earth would pay so their DNA could be sold on the open market? Call me a luddite, but I'm skeptical that this is a viable business model.

Wouldn't this be equivalent to a timeshare company charging you to attend a owners update and then selling all of your private information?

 

[DrQ]

Who on earth would pay so their DNA could be sold on the open market? Call me a luddite, but I'm skeptical that this is a viable business model.

Wouldn't this be equivalent to a timeshare company charging you to attend a owners update and then selling all of your private information?

It's called marketing. They tout it as a "service" to find your ancestry, but buried in the mouseprint is that you are giving up all rights to the "material" that you submit.

 

[ScoopKona]

Who on earth would pay so their DNA could be sold on the open market? Call me a luddite, but I'm skeptical that this is a viable business model.

Wouldn't this be equivalent to a timeshare company charging you to attend a owners update and then selling all of your private information?

Who? People who don't read the terms of service. That's basically everyone.

 

[WaikikiFirst]

they are harvesting DNA that can be sold to other companies for research and other purposes

I'm a sucker for powering my way thru 10Ks & 10Qs. You got it. Not that they make any money that way, but it seems to be the Holy Grail for them, sort of, since the consumer market is a big nothing-burger. They've received dozens of millions of $s from Glaxo & some from some other un-named "partners". Lots of WIP and no profits it seems.

In consumer, revs from saliva kits fell about 25% in last 12 mos, I forget exact #. You have to tweeze it out.
In consumer, # of "Premium Members" fell mucho in last 12 mos, I forget exact #. It is directly given, and a big "OUCH". a HUGE red flag that consumer is a dead (saturated) market. There were some early-adopters and then there is "dive dive dive, down we go"

 

[WaikikiFirst]

hard to take it private with outside investors since it's still waiting to "Show Me The Money!".

Well, it wouldn't be a bank or someone risk-averse. It'd be a PE firm or maybe even a VC firm who has a fetish for "genetics empowering healthcare". PE firms buy unprofitable biz all the time, tighten the belts, eak out a profit and then try another IPO. It is all about "THE STORY", and a biz that was already a "STORY DARLING" once can, well, "Fool me twice. Go ahead."

Also, speaking of powering my way thru 10Ks & 10Qs. After looking at the bal sheet, and trying to balance liabilities vs cash and the # shares owned by the CEO, I'd say it would take only about $60 M of new capital to buy this thing out, at least in the CEO's mind.
$60 M; there are 25 PE firms & 35 VC firms who could write that check over orange juice after being cold-called the prev night ... IF THE STORY IS GOOD & THE CEO ISN'T A LIABILITY.

 

[WaikikiFirst]

People who don't read the terms of service

It is worse. In the 10K, it says there is a "service" that specifically opens up the DNA-trading & 80% (I think it was) of the people qualified for it have proactively signed up. Unless I read it wrong ... but it is in there. Maybe they weasel-worded it and reality is 20% "opted-out" rather than vice versa. There are a couple sentences in the 10K

 

[Glynda]

Actually, they are harvesting DNA that can be sold to other companies for research and other purposes.

Only if the individual tester approves the use of their DNA for research.

 

[ScoopKona]

Only if the individual tester approves the use of their DNA for research.

And if anyone believes these companies are acting in good faith and/or are immune from data breaches, I have a bridge for sale. It's really big, Signal Orange in color, and spans some of the most expensive real estate on the planet.

A bargain at just $1 billion.

 

[dougp26364]

The problem with this product is that it is niche and you can really only sell it once to a person. While they might be able to attract a bigger market, people see problems with the product they sell. The data leak didn't help them all that much either.

Ancestry solved that problem with subscriptions to their service and additional search services so members can research their family history. I don’t know if 23andMe has a similar product since I’ve never looked into them.

 

[dioxide45]

Ancestry solved that problem with subscriptions to their service and additional search services so members can research their family history. I don’t know if 23andMe has a similar product since I’ve never looked into them.

Well, Ancestry started as a genealogy research website where you can track your family tree and match up with other trees. I believe the DNA stuff they do was really just secondary. Genealogy was/is their primary product even before the DNA testing came along.

 

[Glynda]

And if anyone believes these companies are acting in good faith and/or are immune from data breaches, I have a bridge for sale. It's really big, Signal Orange in color, and spans some of the most expensive real estate on the planet.

A bargain at just $1 billion.

I know you're given to hyperbole so I'll not worry about that part.

 

[ScoopKona]

I know you're given to hyperbole so I'll not worry about that part.

I don't have any errant DNA I worry about.

I also believe in the 5th Amendment.

 

[DrQ]

I don't have any errant DNA I worry about.

I also believe in the 5th Amendment.

23andMe is a publicly traded COMPANY, not a GOVERNMENT agency. The 5th Amendment applies to the GOVERNMENT, if you VOLUNTEER your DNA for the purposes of finding familial matches, then the government CAN submit DNA to be matched against your sample to determine that your father, brother or sister, may have been a killer. I doubt if a killer would be stupid enough to submit a sample, but you never know, there are looters who post their antics online.

I've never seen the TOS from 23andMe, but IDK when you submit your sample for matches, that you can exclude the government from looking for matches too. If the government submit samples within the company's TOS, then that is fair.

If you are afraid of such things, then don't utilize the company's service.

 

[dougp26364]

I don't have any errant DNA I worry about.

I also believe in the 5th Amendment.

I bet your carry one of them there fancy government tracking devices in your pocket that they listen in to all your conversations with grandma as well. Probably drive one of them there fancy automobiles with all those buttons and knobs and fancy “tell you how to get there” devices. I know you got you one of them fancy boxes that lets you type in messages to people you don’t know and have talks with folks from places like Russia and China and such.

There is no privacy and hasn’t been for the last several decades. To think there is and not be 100% off the grid is only kidding yourself.

And you only think you don’t have any errant DNA to worry about. All you know is that you haven’t willingly provided any.