23andMe, the well-known genetic testing company, has filed for bankruptcy as it faces significant financial challenges, including $2.3 billion in debt. Despite an initial valuation of over $6 billion following its public offering in 2021, the company failed to generate profit and struggled with a declining demand for its DNA test kits since 2019. Compounding these issues, a data breach earlier this year raised serious concerns about users' data security, leading experts to advise consumers on potential risks. Amidst this uncertainty, the company continues operations while seeking a buyer for its assets.
23andMe, once valued at over $6 billion, filed for bankruptcy due to financial struggles, a data breach, and declining demand for its direct-to-consumer DNA test kits.
The company's financial woes weren't sudden; 23andMe has failed to turn a profit since its inception in 2006, and demand for its one-time test declined around 2019.
Cybersecurity experts have raised alarms over the risks associated with storing genetic data, advising users to delete their information to avoid potential discrimination and financial fraud.
Following 23andMe's bankruptcy filing, a race to acquire the company and its consumer DNA database has begun amid concerns regarding data security and consumer trust.
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