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347123andMe, the popular at-home DNA testing company, has filed for Chapter 11 bankruptcy in the U.S. as it looks to sell itself after a steep drop in valuation and failed buyout attempts. According to Reuters, co-founder and CEO Anne Wojcicki (sister of late YouTube CEO Susan Wojcicki) has stepped down, and the company has appointed CFO Joe Selsavage as interim CEO.
Genetic Data of Millions Now in Limbo
Once worth $6 billion shortly after going public in 2021, 23andMe is now valued at just $50 million. The company laid off 40% of its workforce and shut down its therapeutics program last year. Its most recent restructuring follows a major data breach in 2023, which exposed the personal information of nearly 7 million customers and resulted in a $30 million settlement.
Wojcicki had been seeking a buyout since April 2024. Her most recent offer valued the company at only $11 million. She said she plans to submit another bid during the bankruptcy process.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Chair Mark Jensen said in a statement. The company has secured up to $35 million in financing to continue operations during the sale.
But now, many are wondering: What happens to the genetic data of the 15 million customers who sent their saliva to 23andMe?
Privacy Experts Warn: Your DNA Could Be Treated Like a Corporate Asset
According to I. Glenn Cohen, faculty director of the Petrie-Flom Center at Harvard Law School, the future of that data is murky—and potentially risky. “As 23andMe faces significant financial distress and might be purchased directly or go bankrupt and its assets sold, all of the genetic and health information provided by people is a valuable asset to the company,” Cohen told The Harvard Gazette.
Federal privacy laws like HIPAA do not apply to direct-to-consumer companies like 23andMe. “You are treated by the law essentially as a consumer, not as the patient,” Cohen further explained. While the Genetic Information Nondiscrimination Act offers some protection, it does not fully address what happens to genetic data during a corporate sale or bankruptcy.
23andMe’s privacy policy does mention that data may be transferred in the event of a sale or bankruptcy. Consumers can opt out of research programs or delete their data, but that may not prevent it from being included in asset sales.
The bankruptcy process does include some guardrails. Federal courts oversee the process, and regulators such as the Federal Trade Commission or state attorneys general can intervene. In certain cases, a privacy ombudsperson is appointed to assess whether a sale aligns with prior privacy promises.
But the protections aren’t bulletproof. “We just want people to pay attention to it,” Cohen said.
As for who could buy 23andMe, co-founder Wojcicki is expected to submit another bid. No other suitors have been named yet. But some observers have speculated about companies with strong data capabilities.
Palantir, known for its work with massive datasets in sectors like defense and healthcare, could be a theoretical candidate. The firm has recently pushed into life sciences and already works with public health agencies.
However, its involvement would likely trigger public and regulatory backlash due to privacy concerns.
For now, customers concerned about their privacy still have the option to request deletion of their account or stored samples. But whether that data will stay safe in the long term remains to be seen.
“I would love to see a space where people can get the information they want without feeling as though that information might put them at risk,” Cohen said.
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