Saturday, October 5, 2024

OCTOBER MEETING UPDATE

 On Thursday, October 3rd, Mark Olsen from Family Tree Maker/MacKiev Company presented to us on "What's New in Family Tree Maker".  The link to the program will be posted below when it is available.  There was no handout.

One of the announcements referred to the concerns about 23andMe.  We received an article from Thomas MacEntee (one of our previous Zoom speakers) who owns Genealogy Bargains.  See article below:

Turmoil at 23andMe - What Should I Do?

 
Turmoil at 23andMe - What Should I Do?

Recent reports have highlighted significant challenges facing the personal DNA testing company, 23andMe, following a major data breach and the company's inadequate response. In the wake of a 2023 cyberattack and ensuing boardroom turmoil, customers are understandably concerned about the company's future. If you have a 23andMe profile, it is crucial to take steps to protect your personal information, especially given the potential for the company to be sold, taken private, or face bankruptcy.

Key Events in 23andMe's Recent Challenges

  1. Data Breach (2023): Hackers compromised personal and genetic data from 6.9 million 23andMe users, with Ashkenazi Jewish and Chinese customers specifically targeted. This breach raised serious privacy concerns.
  2. Lawsuit Settlement: 23andMe settled a class-action lawsuit related to the breach, agreeing to a $30 million settlement and providing affected users with three years of security monitoring.
  3. Financial Losses: In Q2 2024, the company reported a $69.4 million loss on $40.4 million in revenue, further compounding its financial struggles.
  4. Stock Decline: After an initial public offering at $10 per share, 23andMe's stock dropped to below $1 by late 2023.
  5. Efforts to Go Private: CEO Anne Wojcicki has been exploring the option to take the company private in response to these financial difficulties.

Recommended Actions for 23andMe Customers

If you are a 23andMe customer, it is advisable to take proactive steps to secure your personal data:

  • Download Your DNA Data: Regardless of the platform—whether 23andMe, AncestryDNA, FamilyTreeDNA, or MyHeritage DNA—you should already have downloaded a copy of your DNA data. For 23andMe users, ensure that you download the .zip file containing your genetic information.
  • Consider Deleting Your Account: If you lack confidence in 23andMe's long-term viability or wish to prevent your DNA data from being sold as a corporate asset, you may choose to request the deletion of your account. This action would erase all genetic reports and terminate any paid membership you hold with the company.

Industry Insights and the Future of 23andMe

Having observed the DNA and genealogy industry for over 15 years, I offer the following perspectives:

  • Unlikely Acquisition by Competitors: It is improbable that major players such as Ancestry, FamilyTreeDNA, or MyHeritage would acquire 23andMe’s assets. While both Ancestry and MyHeritage have previously attempted to enter the health-related DNA market, they were unsuccessful. Additionally, 23andMe is the only company among the "Big Four" to secure FDA approval for certain health reports. If acquired, any buyer would likely need to reapply for FDA approval.
  • Likelihood of Going Private: Given her financial resources and personal investment in the company, it is plausible that Anne Wojcicki may take 23andMe private, continuing her long-standing commitment to the company’s mission.
  • Potential Failure of 23andMe: Should 23andMe exit the market, it could be seen as a fitting outcome given the company’s poor handling of the 2023 data breach. The company's response, which appeared to shift blame to its users, has resulted in widespread dissatisfaction among its customer base.

Resources

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