The Walt Disney Company (DIS) is ditching the Salesforce (CRM)-owned workplace communication tool Slack after a hacking incident leaked more than a terabyte of the media and entertainment giant’s crucial data. According to the Wall Street Journal, Disney’s CFO Hugh Johnston conveyed in an internal memo that most of Disney’s businesses would stop using Slack later this year.
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Disney Moves Away from Slack Following Data Breach
Disney’s decision to transition away from Slack follows the data breach earlier this year by a hacking entity called Nullbulge. As per another report by the Wall Street Journal, Nullbulge leaked data that included 44 million Slack messages, more than 18,800 spreadsheets, and at least 13,000 PDF documents of Disney.
In fact, the leaked documents revealed details about Disney’s streaming revenue. The company doesn’t disclose revenue from its individual streaming services (Disney+, Hulu, and ESPN+). Also, the leaked data from the Slack channels used by the company contained information about cruise staff, including passport and visa details, addresses, and current assignments. Details of some cruise line passengers were also leaked.
Data related to Disney’s ad business was also impacted, including details related to spending by politicians on the company’s ad platforms. Overall, the hacking incident leaked confidential information about the company’s financials and strategy.
Impact of the Hacking Incident
In the 10-Q report filed with the SEC in August, Disney disclosed an ongoing investigation into the “exfiltration and unauthorized release of over a terabyte of data” from one of its communication systems. At that time, the company stated that based on the investigation to date, the incident might not have a material impact.
However, the company’s transition away from Slack indicates the seriousness of the situation.
Is Disney Stock a Good Buy?
Despite the hacking incident and the ongoing challenges in the company’s Parks and Experiences businesses, Wall Street remains highly bullish on Disney stock due to its restructuring efforts and growth prospects.
DIS stock earns a Strong Buy consensus rating based on 12 Buys and three Hold recommendations from Top Analysts covering the stock. The average Disney stock price target of $116.27 implies 24.4% upside potential. Shares have risen 3.5% year-to-date.
