23andMe confirms all potential buyers must comply with privacy policy

23andMe (ME) announced that it has received approvals from the U.S. Bankruptcy Court for the Eastern District of Missourifor its “first day” motions related to 23andMe’s voluntary Chapter 11 petitions filed March 23, 2025, including authorization to pay employee wages and benefits and compensate certain vendors and suppliers in the ordinary course for goods and services provided and to enter into the binding term sheet for a $35M debtor-in-possession financing facility from JMB Capital Partners. 23andMe remains committed to its customers while it seeks to implement an efficient Chapter 11 process that maximizes the value for all of its stakeholders. As discussed in Court today, the Company’s existing consumer privacy policies remain in place, and the Company has not changed how it manages or protects customer data through any of the motions that were approved by the Court. The Court authorized 23andMe to commence a process to sell substantially all of its assets through a Chapter 11 plan or pursuant to Section 363 of the U.S. Bankruptcy Code and approved the bidding procedures associated with the process. To constitute a qualified bid, potential buyers must, among other requirements, agree to comply with 23andMe’s consumer privacy policy and all applicable laws with respect to the treatment of customer data. The Company, with the assistance of Moelis, its independent investment banker, will actively solicit qualified bids over a 45-day process following the Petition Date. Any sale transaction involving the transfer of customer data will be subject to notice and oversight and approval by the Court and customary regulatory approvals. A “second day” hearing for the Court to consider the Company’s additional requested relief, including entry of an order approving the DIP Facility to further support ongoing operations, is scheduled for April 22.