Bankruptcy Court Clears Sale of 23andMe to Co-founder’s Nonprofit

23andMe, a former giant in home DNA testing, now has a fresh start. After going bankrupt earlier this year, a U.S. court has now approved its sale, but not to a tech giant or drug company. Instead, the company is being bought by a nonprofit led by its co-founder, Anne Wojcicki.

This move is big. Why? Because 23andMe holds DNA data from over 13 million people. And now that data will stay under the control of someone who helped build the company from the ground up. We think this changes everything, from how personal data is protected to how health research might move forward.

We’re talking about a bold step. A DNA company shifting from profit-driven to nonprofit goals is rare. It could rebuild trust or raise more questions. Either way, the future of genetic testing just took a major turn, and we’re here to break it all down.

Rise and Fall of a Genomics Pioneer

We learned to unravel our ancestry with 23andMe’s easy home DNA kits. Founded in 2006 by Anne Wojcicki, Linda Avey, and Paul Cusenza, the company changed how people access and understand their genetic information. In 2021, the company joined the stock market through a SPAC deal and reached a peak value of around $6 billion.

But fans waned. Sales dipped as people used tests only once. In 2023, a major breach exposed data from nearly 7 million users via credential stuffing. That triggered a $30 million class‑action settlement.

By March 2025, revenues no longer covered costs. The company filed for bankruptcy, and Wojcicki stepped down as CEO. It was a tough moment for a company that once offered hope with its DNA-driven mission.

What Sparked the Bankruptcy

Three key events led 23andMe to file for Chapter 11 in March 2025:

• Weak sales: The one-and-done test model ran out of steam, leaving revenue flat.
• Data breach: The 2023 hack leaked data from around 7 million users, dealing a heavy blow to trust and finances.
• Legal fallout: Settlements and rising legal costs squeezed the company while users started deleting their data.

With debts piling up, the company needed a fresh path forward, leading to its sale attempt.

The Bidding Battle

a) Regeneron’s Offer

In May, pharmaceutical giant Regeneron led with a $256 million offer to take assets, excluding the e-medicine arm Lemonaid Health. The deal claimed to build on 23andMe’s DNA database for drug research and pledged to follow privacy laws.

b) Wojcicki’s Nonprofit Bid

Then Wojcicki reentered, this time through TTAM Research Institute, offering $305 million. Her offer topped Regeneron’s and included all assets—even Lemonaid. She also revealed backing from a major unnamed Fortune 500 company.

c) Court Drama

The bankruptcy court reopened bidding, giving TTAM a final shot by June 12. Regeneron threatened a $10 million breakup fee if TTAM’s bid succeeded.

In early July, the court approved TTAM’s higher offer. The final hearing was held June 17, and approval followed shortly after.

Privacy and Trust Challenges

This deal isn’t just about money, it’s about trust. Over 15 million DNA profiles are at stake. That prompted a lawsuit from New York, California, and 25 other states to block data transfer without consent.

But TTAM promises to respect existing privacy rules and plans to add stronger data securitWojcicki emphasized user control:

“People deserve the right to choose how their genetic data is used and to have clear access to that information.”

Though those promise transparency, states remain uneasy. The court noted that selling genetic data can feel “scary” and warned that oversight must be tight. We’re watching closely to see how TTAM maintains that trust.

What the TTAM Deal Includes

Here’s what TTAM is buying with its $305 million:

• More than 15 million genetic profiles have been collected through at-home saliva testing kits.
• 23andMe’s DNA testing and analysis service for personal genetic insights.
• Promise to retain current employees and support ongoing business activities.

At the same time, the company’s debts and legal issues remain with the bankruptcy estate.

What This Means Going Forward

a) Genetic Data and Privacy

A nonprofit holding genetic data is rare. If TTAM succeeds, it could reshape expectations for data control by individuals. But states suing show the deal must include strict protections and oversight.

b) Can DTC Health Work Again?

The return to nonprofit roots might breathe new life into the company. TTAM plans to focus more on research and public benefit, possibly moving away from one-time sales and into sustained scientific work.

c) For Research and Users

We know about 80% of users who agreed to research us. If TTAM manages transparency and consent, research could continue responsibly, butt users deserve clear, easy choices every step.

Anne Wojcicki’s Reunion

Wojcicki is back in charge, this time as the leader of a nonprofit. She’s been eyeing control for months, from proposing to take the company private to stepping down and placing a bid via TTAM.

She now has the chance to lead 23andMe’s future path. Her goal is to help individuals access, understand, and make use of their genetic information. As the head of the nonprofit, she’ll be challenged to manage privacy, research, and public service all at once.

Conclusion

This $305 million sale marks a turning point. 23andMe moves from profit-first to public-focused. That could restore trust—or spark new questions. For now, we’ll be watching TTAM’s next moves: stronger privacy, clearer governance, and a reborn mission in public genomics.

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This content is for informational purposes only and not financial advice. Always conduct your research.