Categories: OLD Media Moves

Fortune’s Primack: Forbes, you ignorant slut

Fortune writer Dan Primack takes issue Thursday with how rival business magazine Forbes lowered the net worth of Theranos CEO Elizabeth Holmes to zero because of problems at the company.

Primack writes, “Forbes gave various explanations for its revisions ― which were breathlessly aggregated by other media outlets ― including that Holmes’ stake in her company is likely worthless, given that she holds common stock and there had been over $700 million in preferred shares issued to outside investors.

“But all of Forbes‘ new math kind of misses the big point: It should have never claimed that Holmes was worth $4.5 billion in the first place. (To be fair, Fortune also has referred to her as a “billionaire.”)

“Like other founders of privately-held startups, Holmes did not hold any liquid securities in her company. It’s possible that she sold some shares along the way ― as small secondary transactions alongside broader company fundraises ― to pay the mortgage or buy a car (even a nice car), but the vast majority of her holdings had little more than theoretical value.

“What’s perhaps more remarkable is that Forbes doesn’t seem to have realized its original sin. This year’s list includes several women whose ‘net worth’ also is tied to the opinions of a small group of outside investors. Jessica Alba probably has some Flipper and Dark Angel money in the bank, but the $340 million assigned to her by Forbes is largely based on how venture capitalists recently valued her retail startup, The Honest Co., at $1.7 billion.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

Recent Posts

Wired senior writer Meaker is departing

Morgan Meaker, a senior writer for Wired covering Europe, is leaving the publication after three…

59 mins ago

CNBC’s head of events departing after 28 years

Nick Dunn, who is currently head of CNBC Events as senior vice president and managing…

1 hour ago

WSJ taps Beaudette to oversee business, finance and economy

Wall Street Journal editor in chief Emma Tucker sent out the following on Friday: Dear…

10 hours ago

NY Times taps Searcey to cover wealth and power

New York Times metro editor Nestor Ramos sent out the following on Friday: We are delighted to…

12 hours ago

The evolution of the WSJ beyond finance

Rahat Kapur of Campaign looks at the evolution The Wall Street Journal. Kapur writes, "The transformation…

1 day ago

Silicon Valley Biz Journal seeks a reporter

This position will be Hybrid in the office/market 3 days per week, and those days…

1 day ago