Independent directors of 23andMe resign from board (investors.23andme.com)

Article summary

The board of directors of 23andMe has resigned, reportedly in protest of CEO Anne Wojcicki's attempt to take the company private at a low price. This move comes after the company presented positive phase 2 clinical results for two anti-cancer drugs. The company's stock is currently trading at a low price, and the CEO's actions have raised concerns among investors and commentators. The CEO holds a significant amount of voting power, making it difficult for others to challenge her decisions.

Main themes

• Corporate governance
• CEO accountability
• Company valuation
• Biotech industry
• Takeover bids
• Shareholder rights

What commenters say

• The CEO's attempt to take the company private at a low price is a breach of her fiduciary duty to act in the best interests of the company and its shareholders.
• The company's positive phase 2 clinical results suggest that it has significant potential, but the CEO's management and decision-making have hindered its success.
• Allowing the company to go bankrupt may be a preferable option to accepting the CEO's low takeover bid, as it would wipe out her control and potentially lead to a more favorable outcome for shareholders.
• The CEO's significant voting power and control over the company make it difficult for others to challenge her decisions, even if they are not in the best interests of the company or its shareholders.
• The market value of the company's stock may be a fair reflection of its current management and performance, rather than a undervaluation of its potential.
• The CEO's actions may be motivated by a desire to personally benefit from the company's potential, rather than to act in the best interests of the company and its shareholders.
• The company's history of poor management and decision-making, including a significant data breach and failure to secure customer data, has contributed to its current situation.
• The takeover bid may be seen as a rip-off by some, as it would allow the CEO to acquire the company at a low price and then potentially reap the benefits of its future success without sharing them with current shareholders.