23andMe is exploring strategic alternatives, looking to raise capital

Core Viewpoint - 23andMe is exploring strategic alternatives for the second time, which may include a sale, restructuring, or business combination, amid significant financial challenges and a drastic decline in stock value [1][2][3] Financial Performance - The company's consumer services revenue decreased by 8% to $39.6 million from$42.9 million year-over-year [2] - 23andMe reported a need for additional liquidity to fund operations and expressed substantial doubt about its ability to continue as a going concern [2] Company Valuation and Market Position - 23andMe's market value has plummeted to less than $100 million from a peak of$6 billion [3] - The stock lost 82% of its value in the previous year and fell 10% in extended trading following the announcement [1][2] Management and Strategic Direction - CEO Anne Wojcicki has faced challenges in maintaining the company's viability, including a rejected proposal to take the company private due to lack of financing and no premium offered [3][5] - A special committee of independent directors was formed to evaluate potential paths forward, but all independent directors resigned due to disagreements with Wojcicki regarding the company's strategic direction [4] Restructuring Efforts - The company plans to cut 40% of its workforce and shut down its therapeutics business as part of a restructuring plan [4] - Moelis & Company has been selected as the financial advisor and Goodwin Procter as the legal advisor for the search for strategic alternatives [5]