23andMe files for bankruptcy in US after data breach, big losses
Genetic testing giant 23andMe has filed for bankruptcy protection in the US while it searches for a buyer.
It comes as the company struggles in the aftermath of a data hack and deals with heavy financial losses.
The DNA testing company has also announced the immediate resignation of Anne Wojcicki, its co-founder and chief executive.
California -based 23andMe uses home saliva collection kits to analyze customers' DNA and provide them with personalized reports on their ancestry.
Since being founded in 2006, it has sold more than 12 million DNA testing kits.
It operates in many major markets, including the US, Canada, the UK, and Europe.
23andMe said it had kickstarted voluntary Chapter 11 proceedings in the US – meaning it intends to reorganize its debts and assets to have a fresh start, while remaining in business.
It will also see the company put itself up for sale.
The resignation of Wojcicki is 'effective immediately', by mutual agreement, according to the group.
In a post to social media platform X, formerly Twitter, Ms Wojcicki said she was 'disappointed' by the bankruptcy plan but that she had resigned as chief executive so she could 'be in the best position to pursue the company as an independent bidder'.
Chairperson Mark Jensen said: 'After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximise the value of the business.'
He said the process would help the firm address 'operational and financial challenges', including through further cost-cutting and resolving legal liabilities.
'In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.'
23andMe came under investigation by the UK and Canadian data protection regulators over a 2023 data breach and concerns that genetic information may have been compromised.
It also settled a legal case in the US alleging that the company failed to protect the privacy of its customers.
The firm reported a loss before income tax of more than US$128 million in its latest financial results, covering April to December 2024.
It said lower kit sales and a decline in average selling prices were partly behind a drop in revenues.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NBC News
10 hours ago
- NBC News
A timeline of the twists and turns in the Trump-Musk relationship
The escalating war of words this week between President Donald Trump and tech mogul Elon Musk marked the most contentious chapter in a yearslong and at-times rocky relationship between two of the most influential figures in business and politics. Musk, a former Democrat, has criticized Trump in the past, but over the past year forged a strong relationship with the president that positioned him to wield significant power and influence in the early months of Trump's second administration. Those close ties, though, came after years of ups and downs stretching back to 2016 when Musk accepted a spot on several of Trump's business advisory councils. Here are some of the highlights of Trump and Musk's volatile relationship from the past few years. July 2022: Musk suggests Trump should forgo White House bid Musk, who would ultimately emerge as one of the most loyal contributors to Trump's 2024 campaign, was initially a vocal opponent. Despite a solid working relationship with Trump during his first term, the enigmatic tech leader called on Trump to skip the 2024 race. "I don't hate the man, but it's time for Trump to hang up his hat & sail into the sunset," Musk wrote on X."Trump would be 82 at end of term, which is too old to be chief executive of anything, let alone the United States of America." The post was not without provocation — Trump days earlier at a campaign rally in Alaska bashed Musk for his effort to purchase X, then known as Twitter, and for saying in an interview that he never voted for a Republican. "He told me he voted for me," Trump said at the rally. "He's another bulls--- artist." Musk in response threw his support behind Florida Gov. Ron DeSantis. "If DeSantis runs against Biden in 2024, then DeSantis will easily win — he doesn't even need to campaign," he wrote on X. November 2022: Musk reinstates Trump's Twitter account Weeks after officially taking control of X, Musk extended an olive branch to Trump by reinstating his account on the social media platform — once his favorite online megaphone — after it was banned following the Jan. 6 attack on the Capitol. Musk reinstated the account on Nov. 19, four days after Trump formally launched his 2024 campaign. August 2023: Musk defends Trump as prosecutions pile up By the summer of 2023, Trump had been indicted in three separate criminal cases. Musk, who months earlier predicted Trump would win the 2024 election if arrested, condemned the prosecutions. "I did not vote for him last election, but such aggressive legal action against a former president is not right," Musk wrote. The post served as a shift for Musk, who soon after began posting more sympathetic messages about Trump. March 2024: Trump, desperate for cash, meets Musk in Palm Beach In the first few months of 2024, Trump's campaign found itself in a cash crunch after allocating upwards of $50 million toward his legal defense. So when Trump met with Musk alongside several other wealthy Republican donors in Palm Beach, Florida, most political observers were quick to connect the dots. Musk, the world's richest man, has insisted that the meeting was unplanned and maintains that Trump never explicitly requested funding. 'I'm not paying his legal bills in any way, shape or form … and he did not ask me for money,' Musk said in an interview after the meeting, though he did say afterward that he was at least " leaning away" from President Joe Biden. When asked about their meeting, Trump said he'd "helped" Musk in the past, without providing details. May 2024: Musk establishes a pro-Trump super PAC According to campaign finance documents, Musk created America PAC, a pro-Trump Super PAC, on May 22. Soon after, reports emerged that Trump and Musk had discussed a possible advisory role for the Tesla CEO in a second Trump administration, an effort to ensure Musk would hold a key position in the White House. July 2024: Musk endorses Trump Less than an hour after an assassination attempt on Trump at a rally in Pennsylvania, Musk officially threw his support behind Trump's candidacy. "I fully endorse President Trump and hope for his rapid recovery," Musk wrote on X. Trump responded by touting reports that Musk planned to contribute $45 million a month to his re-election effort and promising to make life "good" for him. "We have to make life good for our smart people. You know, we have some smart people. We have to make life good for our smart people, and he's as smart as you get," Trump said at his first campaign event after the assassination attempt. August 2024: Trump and Musk hold campaign event on X In an event billed by Trump's campaign as "the interview of the century," Trump joined Musk for an online rally on X. The event was repeatedly delayed due to tech issues, but saw the pair bond over their shared disdain for Biden's immigration policies. It also saw Musk unsuccessfully try to prod Trump into prioritizing renewable energy over fossil fuels. October 2024: Musk joins Trump at Pennsylvania rally after spending millions When Trump returned to the site of the first assassination attempt against him, he shared the rally stage with Musk, who accused Democrats of seeking to take away voters' freedom of speech and right to bear arms. Musk emphatically encouraged Trump supporters to "vote, vote, vote." By October, Musk had already given nearly $75 million to the super PAC he created to support Trump, according to campaign finance filings. That money was used in part to fund sprawling get-out-the-vote drives in battleground states, including door-knocking programs in deep-red, traditionally low-turnout areas. November 2024: Trump wins the election, after Musk spends $250 million on the race Trump's striking victory, in which he won all seven battleground states and the popular vote for the first time, came as Musk's spending for the effort surpassed a quarter billion dollars, according to campaign finance reports. Of that total, $120 million came in the final weeks of the race. In his election night speech, Trump praised Musk, saying, "A star is born." One week after the election, Trump appointed Musk and Vivek Ramaswamy to head up a newly formed Department of Government Efficiency, fulfilling a campaign promise to allow Musk to oversee cuts to government spending. Ramaswamy later left to pursue a gubernatorial bid in Ohio. Toward the end of the month, Trump traveled to Texas to watch the launch of Musk's SpaceX Starship rocket, despite previously ridiculing the company. January 2025: Musk speaks at Trump's inauguration rally Musk spoke at Trump's inauguration rally at Capital One Arena, emphatically lauding Trump's victory, jubilantly raising the prospect of taking DOGE to Mars and thanking the crowd for voting to guarantee "the future of civilization is assured." "My heart goes out to you," Musk said before forcefully touching his heart and raising his hand in a gesture some critics likened to a Nazi salute. Musk has denied that assertion. Among the first executive orders Trump signed on Jan. 20 was one that formalized the creation of the Musk-led Department of Government Efficiency. The White House officially announced Musk's role in early February, clearing way for him to oversee a wide-ranging effort to reduce to the size of the federal government through mass job cuts, the cancellation of research programs and grants and the dismantling a federal agencies. March 2025: Trump publicly limits Musk's authority amid clashes with Cabinet In an early sign of tensions between Musk and several Cabinet members, Trump placed limits on his adviser, making clear in a Truth Social post that staffing decisions across the federal government will be determined by agency heads, not Musk. The Tesla CEO had been exercising authority over rank-and-file federal workers, including a threat to fire them if they didn't respond to inquiries regarding their work output. The new publicly established guardrails appeared to do little to hurt the pair's relationship, with Trump a week later turning the South Lawn of the White House into a Tesla show room to demonstrate support for Musk amid slumping sales for his electric vehicle company. May 2025: Musk exits the White House amid simmering tensions On the first day of May, Musk told reporters at the White House that he would soon step back from DOGE to focus on his companies, comparing the shift to going from full-time to part-time work. The announcement came after Tesla reported a drop in its first-quarter profit and revenue. By the end of the month, Musk's exit was formalized. The White House on May 28 confirmed that Musk's tenure as a special government employee, a temporary role that he soon would legally have to exit anyway, had come to an end. Musk thanked Trump "for the opportunity to reduce wasteful spending," and the president at a news conference with Musk days later said, "Elon's service to America has been without comparison in modern history." Trump presented Musk with a gold-colored key at the event. But underneath the polite exchanges hid simmering tension: Musk days earlier appeared on CBS' "Sunday Morning" and bashed a massive Republican bill, designed to fund much of Trump's domestic agenda, by condemning the expected impact of the legislation on the national debt. Trump soon after pulled the nomination of billionaire Jared Isaacman, an associate of Musk, to be NASA administrator. June 2025: Tensions boil over and spill into public Days after formally departing the White House, Musk launched a scathing attack on the Trump-backed bill making its way through Congress. 'I'm sorry, but I just can't stand it anymore,' Musk wrote in a post on X. 'This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.' Asked about those criticisms, Trump expressed disappointment. "Elon knew the inner workings of this bill,' Trump told reporters, before suggesting Musk's opposition to the bill was personal. 'Elon is upset because we took the EV mandate which was a lot of money for electric vehicles. They're having a hard time the electric vehicles, and they want us to pay billions of dollars in subsidy," Trump said. The attacks quickly grew more personal. Musk called out Trump's "ingratitude," arguing that Republicans would have lost the 2024 election without his support. Trump in response said Musk "went crazy" after being asked to leave his White House role, and he toyed with the idea of severing government ties with Musk's companies. Musk replied by claiming Trump was in what are known as "the Epstein Files," and said Trump's tariff policy would cause a recession. He also amplified a post calling for Trump to be impeached and replaced by Vice President JD Vance. A day after the barrage of attacks, Trump told reporters he's no longer thinking of Musk. "Honestly, I've been so busy working on China, working on Russia, working on Iran, working on so many — I'm not thinking about Elon. You know, I just wish him well," he said.
Reuters
13 hours ago
- Reuters
EchoStar prepares potential bankruptcy filing amid FCC review, WSJ reports
June 6 (Reuters) - EchoStar (SATS.O), opens new tab is considering a Chapter 11 bankruptcy filing as the telecommunications services firm vies to shield its cache of wireless spectrum licenses from the threat of revocation by federal regulators, the Wall Street Journal reported on Friday, citing people familiar with the matter. The company declined to comment on the report. Last month, the Federal Communications Commission (FCC) notified, opens new tab EchoStar it was investigating the company's compliance with certain federal obligations to provide 5G service in the U.S., questioning EchoStar's buildout extension and mobile-satellite service. FCC's actions have severely limited the company's ability to make strategic decisions regarding the growth and investment of its Boost Mobile business, according to a regulatory filing by the company last month. EchoStar has previously disclosed that it missed roughly $500 million in interest payments, citing uncertainty around the ongoing FCC review. U.S. satellite TV provider DirecTV terminated its agreement to acquire EchoStar's satellite television business last year, which includes rival Dish TV, over a failed debt-exchange offer.
Metro
17 hours ago
- Metro
Donald Trump calls Elon Musk 'man who has lost his mind' and won't talk to him'
President Donald Trump has dubbed his former pal Elon Musk as a man who 'lost his mind' and is refusing to speak with him. Trump on Friday morning reportedly seemed rather uninterested in the fiery verbal feud with Musk that blew up just hours earlier. Asked if he had a call with Musk set for later in the day, Trump just before 7am said: 'You mean the man who has lost his mind?' Trump told ABC News that he was 'not particularly' keen on speaking at the moment with Musk, who used his X (formerly Twitter) platform to engage in a real time war of words on Thursday. The president said that Musk wants to speak with him, but said he is not ready to do so. A Trump adviser who was with him on Thursday night said that he appeared more 'bummed' about the breakup with Musk that angry, according to the news outlet. The feud exploded when the president suggested in a press conference that Musk has 'Trump derangement syndrome' and claimed that the Tesla CEO opposes his 'One, Big, Beautiful Bill' because it cuts consumer tax credits for electric vehicles. Trump and his former Department of Government Efficiency (DOGE) chief sparred for hours and the feud escalated to an unbelievable level. By Friday, it had quieted down considerably. More Trending While Trump's opponents rejoiced in the seeming end to the bromance, many of his supporters hoped that they would reconcile, sooner rather than later. Musk's father, Errol Musk, said he urged his son to put an end to the fight. 'I haven't spoken to him, but I did send him a message, you know, telling him to make sure this fizzles out,' he told Al Arabiya English from Delhi Airport. 'Trump, of course, will prevail, because he is has been voted in by the majority of the people in America.' Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Coca-Cola recalls Topo Chico mineral water over fears of bacteria MORE: Donald Trump's new anti-terror chief is a 22-year-old former gardener MORE: Donald Trump and Elon Musk might make peace – but it will never last
