Forbes revalues Elizabeth Holmes’ worth from billions to nothing
By : Wibbitz Top Stories
Published On: 2016-06-01
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Forbes magazine reduced its estimate of the net worth of Elizabeth Holmes, the founder and chief executive of health technology company Theranos Inc, to zero from $4.5 billion last year.
Forbes explains that its estimate of Holmes's net worth was based solely on her 50% stake in Theranos, which was once valued at $9 billion: Forbes spoke to a dozen venture capitalists, analysts and industry experts and concluded that a more realistic value for Theranos is $800 million, rather than $9 billion.
Holmes’s stake in the company, Forbes said, is “essentially worth nothing.”
Her investors own preferred stock, which mean that they will be paid out first should the troubles startup liquidate, and the lowered valuation of the company means that Holmes would walk away with nothing.
