Cambridge Analytica files for bankruptcy, closes down

3 May 2018

Cambridge Analytica files for bankruptcy, closes down

The political consultancy firm at the centre of the Facebook privacy scandal, Cambridge Analytica, will shut down immediately and begin bankruptcy proceedings.

In a statement, Cambridge Analytica said it “has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas.”

According to the firm, negative press coverage “has driven away virtually all of the Company’s customers and suppliers. As a result, it has been determined that it is no longer viable to continue operating the business, which left Cambridge Analytica with no realistic alternative to placing the Company into administration.”

Cambridge Analytica accessed the Facebook data of 90 million users to build psychological profiles for US President Donald Trump’s 2016 election campaign.

The firm was initially created with a focus on US elections, and according to the New York Times, received $US15 million ($20 million) in funding from billionaire Republican donor, Robert Mercer. The New York Times also reported that the name was provided by former Trump advisor Steve Bannon.