23andMe is exploring strategic alternatives, looking to raise capital
Anne Wojcicki, co-founder and chief executive officer of 23andme Inc., during the South by Southwest (SXSW) festival in Austin, Texas, US, on Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty Images
Embattled genetic testing company 23andMe said on Tuesday that it’s started exploring strategic alternatives for a second time, which could include a sale of the company or its assets, a restructuring or a business combination.
The stock, which lost 82% of its value last year, fell 10% in extended trading and was briefly halted.
The announcement coincided with the release of 23andMe’s third-quarter results. Revenue in the company’s consumer services business dropped 8% to $39.6 million from $42.9 million in the same period last year.
The company said it will “need additional liquidity” to fund its operations, and it is looking to raise capital.
“Management has determined that there is substantial doubt about the Company’s ability to continue as a going concern,” 23andMe said in the earnings release on Tuesday.
CEO Anne Wojcicki has been trying to keep the company afloat. 23andMe is now worth less than $100 million, down from a peak of $6 billion.
In March, 23andMe’s independent directors formed a special committee to evaluate the company’s potential paths forward. Wojcicki submitted a proposal to take the company private in July, but it was rejected because it lacked committed financing and offered no premium to the closing share price at the time, the committee said.
The independent directors all resigned from 23andMe’s board two months later, citing disagreements with Wojcicki about the “strategic direction for the company.” Wojcicki has since appointed three new independent directors to its board, and 23andMe also said it planned to cut 40% of its workforce and shutter its therapeutics business as part of a restructuring plan.
On Tuesday, 23andMe said the special committee will oversee the search for strategic alternatives again, according to a release. The committee has selected Moelis & Company as its financial advisor and Goodwin Procter as its legal advisor.
There’s no guarantee that a deal will take place, the committee said. Wojcicki has repeatedly expressed her desire to take the company private, but it’s not clear if she will submit another proposal to do so.
23andMe declined to comment.
WATCH: The rise and fall of 23andMe
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How Broadcom’s big OpenAI deal fits into the data center boom and what it means for the AI trade
Oracle CEO, Clay Magouyrk, sits down with CNBC’s David Faber on Oct. 13, 2025.
CNBC
Oracle CEO Clay Magouyrk, one of the two people tapped last month to lead the software company, is confident that OpenAI will be able to cover the costs of the massive amount of cloud infrastructure services it consumes.
In an interview with CNBC’s David Faber at Oracle’s AI World conference on Monday, Magouyrk said “of course” OpenAI can pay $60 billion for a year’s worth of cloud resources. In July, OpenAI agreed to a five-year deal with Oracle that’s worth over $300 billion.
“Just look at the rate at which they’ve grown to, you know, almost a billion users. That’s just unheard of,” said Magouyrk, who sat alongside fellow Oracle CEO Mike Sicilia for the interview in Las Vegas.
OpenAI said last week that its flagship ChatGPT chatbot, which was publicly launched less than three years ago, now has 800 million weekly active users. In 2024, OpenAI recorded a $5 billion net loss.
Sicilia said Oracle has started integrating OpenAI artificial intelligence models into a patient portal for viewing electronic health records. Oracle acquired EHR vendor Cerner for about $28 billion in 2022.
“I’ve seen the results, and I really do think that they’re going to have a dramatic impact on industries, on enterprises of all types,” Sicilia said of OpenAI.
OpenAI rents out Nvidia graphics chips to run models through Oracle, as well as CoreWeave, Google and Microsoft. At the same time, the company is designing a custom AI processor that Broadcom will build. Earlier on Monday, Broadcom and OpenAI said they will jointly deploy 10 gigawatts worth of the new OpenAI chips.
Building out that much infrastructure requires a hefty amount of new energy.
“I think it’s a factor of time, not a factor of if we’ll have enough power,” Sicilia said.
Oracle shares rose almost 6% on Monday. The stock has gained 86% this year, lifting Oracle’s market cap close to $900 billion.
WATCH: Oracle CEO Magouyrk: ‘Of course’ OpenAI can pay $60 billion per year
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