One of the Largest Ancestry Companies in the World Files Bankruptcy

One of the biggest ancestry companies in the world has announced that they have filed for bankruptcy and plans to sell most of its assets.

Over the years many of us have invested time and money attempting to uncover our family tree history, where our ancestors originated, and who we might be related to. 30 years ago it was really hard to find accurate reliable ancestor information.

That all changed in 1996 when the first ancestry website Ancestry.com went live giving customers the chance to investigate their ancestry. Ancestry.com quickly became the largest for-profit genealogy company in the world, and soon after a few other companies launched as an alternative.

23andMe Launches

23andMe was founded 10 years later and quickly became one of the most popular direct-to-consumer genetic testing companies in the world. Using saliva samples, the company would analyze each submission and then provide reports on ancestry, traits, and genetic predispositions to certain health conditions.

By 2021 the company was valued at $6 billion, today its value is nowhere close.

23andMe Files for Bankruptcy

Currently valued at just under $50 million, a 92% decrease from 2022 and an 80% drop in the past year has led the company to announce it has filed for bankruptcy and will be seeking to sell the ancestry company. According to WTEN, the company, which has $214 million in debt plans to sell most of its assets to the highest bidder as part of its Chapter 11 proceedings.

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Along with filing for bankruptcy the company also announced that its founder and CEO Anne Wojcicki has stepped down and will be replaced by current CFO Joe Selsavage on an interim basis. Wojcicki is attempting to purchase the company from shareholders and if successful plans to take the company private.

Is Customer Private Information Safe?

The company intends to continue operations as normal, including how the company stores, manages, or protects sensitive customer data throughout the court proceedings but whoever the winning bidder is, they will also have to comply with all privacy laws according to court papers.

23andMe Lawsuit

The bankruptcy filing didn't come as a surprise to some financial experts as it comes a month after the company announced it had agreed to settle a 2023 lawsuit, which accused the company of failing to protect the privacy of 6.9 million customers affected by a 2023 data breach. The company agreed to pay $30 million and offer three years of security monitoring to settle.