Theranos, one of the glory stories of medical tech innovation, is looking like a fairy tale these days. Forbes now says the company is worth a mere $800 million after estimating it at $9 billion just last year. Theranos is privately held, which makes its value difficult to measure -- but this is a drop of epic proportions. Sinking along with the company's valuation is the net worth of its founder and chief impresario, Elizabeth Holmes. Forbes named her the No. 1 richest self-made woman in America last year, with a reported net worth of $4.5 billion. Now Forbes says she's worth zilch, zero, nada. A Wall Street Journal report says Theranos faces unhappy partnerships, a criminal probe, potential lawsuits and a growing list of other problems.
Is there a reason to trust Forbes' $800 million valuation, given the track record? In 2015, Forbes pegged rapper 50 Cent's net worth at $155 million two months before he filed for bankruptcy over a $5 million debt. Even when a company is publicly traded, it's difficult to see inside its machinations sometimes. Not long before Enron failed, Fortune ranked it as the 7th most valuable company in America.The BEST SALES on Amazon NOW ]