- The CEO is effectively the control owner of the company, having 49% of the voting right. She has been trying to take the company private for some time.
- Last August, she proposed to buy all the outstanding shares at $8 per share. The board rejected. She installed a new board, and submitted her proposal again at $2.53 per share. The board rejected. She tried it a third time at $0.4 per share this month, and the board rejected.
- Meanwhile 23andMe was losing $50M every quarter.
So, unable to resolve the issue, the board choosed to enter into the bankruptcy process. I hope this relieves 23andMe from the corporate governance nightmare.
- The CEO is effectively the control owner of the company, having 49% of the voting right. She has been trying to take the company private for some time.
- Last August, she proposed to buy all the outstanding shares at $8 per share. The board rejected. She installed a new board, and submitted her proposal again at $2.53 per share. The board rejected. She tried it a third time at $0.4 per share this month, and the board rejected.
- Meanwhile 23andMe was losing $50M every quarter.
So, unable to resolve the issue, the board choosed to enter into the bankruptcy process. I hope this relieves 23andMe from the corporate governance nightmare.