I saw several articles on the potential sale, citing unnamed sources. One is this one – Richard Branson SPAC may help take 23andMe public at $4B valuation: https://www.bizjournals.com/sanjose/news/2021/01/28/richard-branson-spac-may-help-take-23andme-public.html. Not seeing anything on 23andMe indicating a merger will happen. Not surprising as that can cause both stocks to rise unexpectedly. Something to avoid if the deal falls through or runs into other snags. I will keep checking back in case a merger happens or doesn’t happen.
By Cromwell Schubarth – TechFlash Editor, Silicon Valley Business Journal Jan 28, 2021, 10:02am EST
A “blank check” merger at a $4 billion valuation may be in the future for consumer genetics testing unicorn 23andMe Inc.
Bloomberg and Financial Times both cited unnamed sources on Wednesday who said the Sunnyvale company led by Anne Wojcicki is in talks with New York-based VG Acquisition Corp., a special purpose acquisition company (SPAC) backed by Richard Branson‘s Virgin Group Ltd.
The SPAC’s stock (NYSE:VGAC) jumped by 18% on the news on Wednesday before trading was halted temporarily. It finished the day down 0.7%, closing at $13.55.
Both reports said 23andMe would be valued at about $4 billion if a deal can be worked out. It was figured to be worth about $2.5 billion in a 2018 funding round, according to PitchBook Data. Bloomberg reported its sources said a more recent round in December came at the same valuation.
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