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23andMe CEO Anne Wojcicki (Hubert Vestil/Getty Images)

23andMe is going to figure out exactly how much 15.1 million genomes are worth

At some point, a big tech company will buy 23&Me for its huge DNA dataset, right?

9/20/24 11:49AM

On Tuesday, all seven independent directors of 23andMe, the DNA testing company that will provide your ancestry and genetic profile for $130 and a tube of saliva, resigned from the company’s board. The reason for their resignation, it appears, stems from disagreements with CEO Anne Wojcicki over her July 29 proposal to take the company private at 40 cents per share. From Wojcicki’s proposal:

Based on the information available to me and my potential financing sources, we are prepared to offer $0.40 per share in cash to acquire 100% of the Company’s outstanding shares of common stock. This price per share represents a premium of 11% to the closing stock price of $0.36 per share as of April 17, 2024, which was the last closing price prior to the amendment to my Schedule 13D filing with respect to the Company stating my intention to evaluate such a proposal.

That 11% premium mentioned by Wojcicki is doing a lot of work here: When the market closed on April 17, the last trading day before she filed the amendment to her Schedule 13D to announce her intent to take the company private, 23andMe’s stock closed at a then-all-time low of $0.36.

After her filing, the stock price jumped from $0.36 to $0.51 in reaction to news that she wanted to take the company private. That’s typical: When investors learn a company is in talks to be taken over, they bid the stock up to where they think it will sell, minus a risk premium for the deal not actually happening. That means 23andMe investors initially thought the offer would actually be for more than 51 cents a share. Meanwhile, the stock had only closed below 40 cents six times in the year leading up to her proposal.

So it feels pretty clear that 40 cents is a lowball offer.

Wojcicki also owns ~20% of the company’s stock, and she said that she has no interest in, and would not vote in favor of, an alternative sale, merger, or similar transaction. Basically, her stance is, “Let me buy my company back for no premium, or I’ll make it exceedingly difficult for you to sell it to anyone else.”

The Special Committee of the Board, as you could expect, did not accept her offer, stating:

We are disappointed with the proposal for multiple reasons, including because it provides no premium to the closing price per share on Wednesday, July 31st, it lacks committed financing, and it is conditional in nature. Accordingly, we view your proposal as insufficient and not in the best interest of the non-affiliated shareholders.

On Tuesday, noting in a memo that “After months of work, we have yet to receive from you (Wojcicki) a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders,” the independent directors of the board have resigned.

I want to address a couple of things here, starting with what exactly went wrong at 23andMe.

In June 2021, the DNA testing company went public through a reverse merger with Richard Branson’s SPAC, VG Acquisition group, at a $3.5 billion valuation. Investor sentiment was positive, with the stock jumping 21% to close at $13.32 on its first trading day. It’s been all downhill since then, however, with the company now worth just $180 million, down ~95% from its IPO.

One reason for its collapse is that the company just hasn’t been able to make money. In 2021, 23andMe projected that by the end of fiscal year 2024 (March is the last month of 23andMe’s fiscal year), the company would have 16.4 million customers, 2.9 million subscribers, and $400 million in annual revenue.

For context, customers can make a one-time payment of $99 or $199 for access to different ancestral and basic health data, but paying subscribers gain access to more detailed reports covering genetic health risks, pharmacogenetics, and carrier status for various genetic variants. It appears, however, that demand for these more detailed reports was lower than anticipated.

While the company’s customer count of 15.1 million slightly lagged its earlier projection, revenue and paying subscribers weren’t even close. 23andMe’s revenue declined from $265 million in 2023 to $192 million in 2024, and its paying subscribers dropped from 640,000 to 562,000. Not great!

Now, 23andMe is a cash-burning genetic testing company with a broken business model and declining revenues, and exit opportunities look unclear as the CEO and the now-former board couldn’t agree to terms on a take-private deal. One possibility that I think is interesting is an AI company, or a big tech company building its own LLM models, paying a premium to buy the whole business, just to have the data.

So, basically, the business didn’t work. Many such cases from former SPACs. However, now that we’re in an AI boom, my question is this: at what point does someone pay a huge premium to acquire 23andme just to get their hands on the company’s health data? Sure, 23andMe failed to become a profitable business, but the company has the genetic information of 15.1 million people, mapping their ancestries, likelihoods of various diseases, and more. How much is that worth to a big tech company?

In March 2022, Microsoft acquired Nuance Communications, a “leader in conversational AI and ambient intelligence across industries including healthcare, financial services, retail and telecommunications,” for $19.7 billion in a move to “usher in a new era of outcomes-based AI.” Nuance had best-in-class conversational AI, and, per Scott Guthrie, Microsoft’s executive vice president for its Cloud and AI group, “This powerful combination will help providers offer more affordable, effective and accessible healthcare, and help organizations in every industry create more personalized and meaningful customer experiences.” And that acquisition happened before ChatGPT was launched in 2022.

How much would the genetic profiles of 15.1 million folks be worth in 2024, if tech companies are willing to pay image platforms like Photobucket and Shutterstock anywhere from tens of millions to billions of dollars for original photos and videos to use as training data? I wouldn’t be surprised if a big tech buyer came in and offered a large premium for 23andme — which still wouldn’t cost them very much in the grand scheme of things, considering 23andMe’s market cap is less than $200 million — just to get their hands on the data.

Tom Jones6/24/26

Prime Day is here again and Amazon’s subscription service has never been more popular

Well, it’s that time of year again: many have made their wish lists, people are scraping together the money they’ve saved to pick out a perfect gift, some are presumably leaving out refreshments for the weary delivery drivers and, more and more, drones.

It’s Amazon Prime Day — meaning that it’s the second day of the four-day promotional event that Amazon still calls Prime Day — of course, and it’s even come early this year, with the company bringing the period into late June from July, when it’s been traditionally held for the last five years.

The Prime Age

Alongside the eyes and endless clicks that the arbitrary stream of listicles on “The Best Prime Day Deals” that almost every media outlet pours into, Amazon will also be cheering the fact that there’s now more Prime users than ever before to devour the retailer and its sellers’ sometimes-contested “discounts.” Indeed, according to the latest annual estimates from Consumer Intelligence Research Partners (CIRP), there were just over 200 million American shoppers using Amazon’s massive subscription service at the end of 2025.

Max Knoblauch6/15/26

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

Millie Giles6/11/26

JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”