1. Wojcicki and New Mountain propose a $2.53 share buyout of ME. It offers immediate liquidity. 2. ME closed at $2.42 with a $65M market cap. The stock lost over 80% in 2024. 3. A new special committee and board shakeup are underway. A prior 40-cent proposal was rejected.
The offer provides a modest premium over the closing price, offering a potential floor for ME’s shares. Past privatization proposals in distressed stocks have induced short-term price support when a clear premium is indicated.
ME’s steep decline and board upheaval make any credible bid highly significant. The proposal directly addresses investor concerns, providing a clear exit premium that could reshape near-term valuations.
The liquidity event is immediate upon approval and will likely drive a swift market reaction. Similar deals in the biotech sector showed a prompt retracement to the bid level once announced.