[marshray]

Well not necessarily.

Bad publicity has an impact all its own at most companies. For example, they have a whole Marketing department trying to get their name out there in a positive light. When their phones light up with every member of the press wanting quotes (press contacts they've spent years working on their relationship with) the executives have to get together and talk about it and come up with a unified response that won't blow up on them like CarrierIQ.

It's a big big deal for a public-facing company. Bigger than, say, a small decrease in the rate of new $2 account customers.