Israel’s spyware company the NSO Group, recently blacklisted by the United States over the illegal use of its spyware, is reportedly considering shutting down its Pegasus operation and selling the entire company to an American investment fund.
The shutting down of the Pegasus unit could decrease the value of NSO as a company as it accounts for about half of NSO’s revenue. Two US-based fund houses have discussed taking control of the company and closing Pegasus.
The company is said to be in talks with multiple investment funds for either refinancing so that it can service its debts, or sell the company. Under the refinancing option, the investment houses could inject as much as $200 million and “turn the know-how behind Pegasus into strictly defensive cyber security services, and perhaps develop the Israeli company’s drone technology”.
Earlier this year, in a series of reports published by several media houses across the world, it was alleged that the NSO Group’s software Pegasus is alleged to have been used by governments to snoop on journalists, activists, government officials, and even ministers.
Though the company maintained that the software was only meant to assist countries in fighting crime and terrorism, and despite the Israeli government persuading on its behalf, the US Department of Commerce still blacklisted NSO.
