A major DNA testing company, 23andMe, has seen a mass resignation of its board of directors due to conflicts over CEO Anne Wojcicki’s intentions to take the business private. The unexpected action is a result of Wojcicki’s $4 billion attempt to take the business private.
Sources claim that the board members left because they disagreed with Wojcicki’s plans to take the business private, believing that doing so would serve her own interests over those of the company’s stockholders. Wojcicki’s plans are severely hampered by the board members’ resignations, since they remove her ability to get support for her choices.
The resignations coincide with 23andMe’s ongoing expansion of its offerings, which include genetic analysis and DNA testing. With millions of users worldwide for its DNA testing kits and services, the company has emerged as a pioneer in the biotech sector.
The board members’ resignations are a big step forward for the biotech sector because they bring attention to the difficulties and disputes that might occur when a company’s management decides to go private. Wojcicki has been a major contributor to the company’s development and success, thus the relocation is also a blow to him.
The board members’ choice to step down, according to Wojcicki’s statement, “disappointed” her, but she vowed to keep pushing for taking the business private. In spite of the board members’ reservations, she added, she thought the deal would benefit the company’s shareholders.
The biotech business has seen a big development with the board members’ resignations, and it is unclear how things will pan out