Wonders if it was worth saving 100k.... After all the possible lawsuits from not having there stuff secured. Then there is the tarnished name and reputation! I agree that paying wasn't the best way to handle the situation but at the same time. The article make it sound like going to the FBI was a after thought also!. How was there security? Guessing not really up to snuff! I really think companies that house important data should have to meet minimal security standards are dump that data daily. One or the other.
If they gave him 100k, there was nothing to stop him from releasing the information anyway or then knowing they're willing to say, "Oh, make it 500k" or more. It would also make them a target in the future since they would be known to pay.