Hollywood producer to lead acquisition of spyware maker NSO – 9to5Mac

Hollywood producer leads NSO spyware firm acquisition deal

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Hollywood film producer Robert Simonds is leading a newly agreed acquisition of NSO Group, the controversial Israeli spyware maker behind the Pegasus surveillance tool that has repeatedly targeted iPhone and Android users through zero-click exploits.

From board member to buyer

Simonds previously joined NSO’s board in early 2023 following an ownership change that transferred control to founding member Omri Lavie. His initial attempt to acquire the company collapsed just five months later, prompting his resignation from the board. Now he has successfully negotiated a new acquisition agreement, though the financial terms remain undisclosed.

The deal requires approval from both Israel’s Defense Export Control Agency and the U.S. Federal Trade Commission before it can be finalized. This regulatory scrutiny comes amid ongoing legal challenges and ethical concerns surrounding NSO’s surveillance technology.

Pegasus spyware’s controversial history

NSO Group gained international notoriety through its Pegasus spyware, which security researchers have documented using zero-click exploits to compromise devices without any user interaction. The software has been linked to surveillance of journalists, human rights activists, and political figures worldwide.

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Meta successfully sued NSO for $167 million earlier this year over allegations the company targeted WhatsApp users through a zero-click vulnerability in 2019. Multiple other lawsuits and government investigations have questioned the ethics of selling such powerful surveillance tools to government clients.

Chinese investment connections raise concerns

Simonds’ previous business ventures include significant Chinese investment ties that could complicate regulatory approval. His entertainment company STX Entertainment received substantial funding from Hony Capital, a private equity firm controlled by Legend Holdings, which also owns Lenovo.

Additional STX investors included Tencent and Hong Kong-based PCCW, with Hony Capital later leading a $700 million funding round. These connections to Chinese investors may raise national security concerns given NSO’s sensitive surveillance technology and government clientele.

Conflicting statements and regulatory future

An NSO spokesperson initially told TechCrunch that the acquisition “does not mean that the company is moving out of Israeli regulatory or operational control,” emphasizing that headquarters and core operations would remain in Israel under defense ministry supervision. However, the spokesperson later requested the comments be withdrawn, claiming they were made off the record – a request TechCrunch declined to honor.

The acquisition faces significant regulatory hurdles at a time when surveillance technology companies are under increased global scrutiny. Approval from both Israeli and U.S. regulators is required before Simonds can complete his takeover of one of the world’s most controversial cyber intelligence firms.

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