On June 5, Julian Klymochko called the 23andMe board’s strategy during its bankruptcy “a phenomenal job” and “a masterclass.” The CEO of Accelerate Financial Technologies highlighted how the board handled a “coercive and shareholder-unfriendly bid.” Klymochko said this case will likely become a benchmark in boardroom strategy studies. His remarks come after former CEO Anne Wojcicki returned with a $305 million bid, triggering a second auction. The move followed the initial $256 million bid from Regeneron Pharmaceuticals, which had emerged as the winner in May. The 23andMe bankruptcy filing and auction strategy led to a 7.6x increase. This is more compared to TTAM’s original $40 million valuation months earlier.
Board Strategy Behind 23andMe Bankruptcy Auction
The 23andMe bankruptcy strategy focused on shareholder value amid steep losses and privacy concerns. The company filed for Chapter 11 bankruptcy in March 2025 in Missouri, citing a sharp drop in consumer demand and fallout from a 2023 data breach. The initial $256 million offer from Regeneron Pharmaceuticals triggered concerns over valuation and fairness.
TTAM Research Institute, a nonprofit formed by co-founder Anne Wojcicki, argued that the auction was rushed and unfair. The board supported reopening the process to consider TTAM’s $305 million bid, nearly 20% higher. The court-approved decision to relaunch the auction reflected the board’s commitment to extracting maximum value for stakeholders. Bankruptcy Judge Brian Walsh approved the second auction process. It gave TTAM the opening bid and Regeneron the right to counter.
Key Details from the Auction and Court Dispute
The new auction format allowed TTAM to start at $305 million. Regeneron could counter with $315 million or more. TTAM would then have a chance to rise again. Regeneron would get the final right to top that bid. Regeneron requested a $10 million breakup fee, arguing that reopening the auction was unfair. The court has not ruled on the fee yet. Wojcicki’s TTAM initially offered $146 million in April.
The revised $305 million offer marked a dramatic increase, showcasing renewed confidence in the company’s assets. The DNA data cache, which includes over 15 million profiles, remains the centrepiece of the asset sale. Both TTAM and Regeneron pledged to uphold 23andMe’s privacy rules. Customers can still request their data to be deleted.
Market Reaction and Public Concerns Over DNA Privacy
The 23andMe bankruptcy auction reignited privacy concerns among U.S. lawmakers and consumers. Many worry about what happens to DNA data once ownership changes hands. The data breach in 2023 already damaged trust in the brand. Despite bankruptcy, the company still holds data from over 15 million users and maintains 550,000 paid subscriptions. Lawmakers demanded transparency on how data will be handled during and after the sale. Both bidders confirmed that 23andMe’s privacy policy will remain in place. That includes honoring deletion requests and not selling data without consent. However, public confidence remains low after the previous breach, which exposed genetic and personal information.
Future of 23andMe Assets and Strategic Lessons
The second auction, sparked by the TTAM bid, is expected to conclude later this month. Judge Brian Walsh will oversee the final steps in St. Louis. The result will shape the future of the company’s technology, customer data, and brand name. Klymochko’s X tweet highlights the importance of strong board decisions in distressed scenarios. His view that this case will become a business school study reflects the unique nature of the process.
The board succeeded in converting a weak position into a competitive auction with multiple bidders. Shareholders have benefited from a significantly higher bid. Meanwhile, privacy advocates will continue to monitor how the eventual buyer manages sensitive genetic information. The outcome of the pending class-action lawsuit related to the data breach could also affect long-term trust in consumer DNA testing. The 23andMe bankruptcy story offers a mix of financial recovery, legal battles, and privacy concerns. With a new auction underway, the next chapter will define the legacy of both the company and its leadership.
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