Cambridge Analytica is closing its doorsBy Robin-Leigh Chetty 3 May 2018 | Categories: news
Two months ago no one really knew about data firm Cambridge Analytica. Now, having been at the centre of the recent scandal involving Facebook, the company has come under serious fire. So much so, that the Wall Street Journal (paywall) is reporting that Cambridge Analytica is shutting down.
According to the publication, Cambridge's parent company, SCL Group will be filing for insolvency, with bankruptcy proceedings reportedly set to begin thereafter. Following the revelations regarding how Cambridge Analytica captured Facebook user data via the use of a simple personality test, and then being embroiled in data privacy concerns, the company was front and centre in terms of negative press coverage.
This is apparently the reason why Cambridge Analytica has to be shut down, with a spokesperson noting that, "The siege of media coverage has driven away virtually all of the company’s customers and suppliers."
While the data privacy scandal is proved damaging for Cambridge Analytica, it has interestingly had little ill effect on Facebook, with the social media platform's monthly user base currently sitting at 2.2 billion. Add to that the fact that Mark Zuckerberg's US Senate hearings yielding very little, and Facebook appears to bulletproof at this stage.
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