Elizabeth Holmes' Net Worth Slips to ZERO from $4.5 Billion According to FORBES Estimates
Till last year Theronas was one of the biggest things in the health technology space due to the revolutionary way in which it conducted blood tests and was regarded as one of the most important innovations for years, while its creater Elizabeth Holmes was not only hailed as one of the great innovators but also among the richest self made women in the world by FORBES. However, over the past year, Theronas' methods have been found to be faulty and the company has plummetted in value, as a result of which FORBES has stated in a recent article that it has downgraded Holmes' 50% stake in the tech company to nothing. Holmes has not commented on the issue but it is certainly not going to be a pretty read for her.
The FORBES article states: - "new information indicating Theranos' annual revenues are less than $100 million, has led FORBES to come up with a new, lower estimate of Theranos' value.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. That gives the company credit for its intellectual property and the $724 million that it has raised, according to VC Experts, a venture capital research firm. It also represents a generous multiple of the company's sales, which FORBES learned about from a person familiar with Theranos' finances. At such a low valuation, Holmes' stake is essentially worth nothing"
Although the company has absolutely no plans to liquidate, any liquidation of shares would first result in the preferred shareholders getting back their money first and that would very little for Holmes, if anything at all. In other words, she would be the last to get any money back in such an event. However, that can happen if the company has any buyer and at this point of time, the diagnostic company seems to be at crossroads as its methodology has been regarded as faulty and it would need to completely overhaul its methods if they are to become a viable business again.
