Fast Facts

• NSO Group, the Israeli company behind Pegasus spyware, is now majority-owned by a U.S. investment consortium.
• Pegasus has been used by governments worldwide to hack smartphones, targeting journalists, activists, and political opponents.
• The U.S. blacklisted NSO in 2021 after reports Pegasus was used against American officials and civil society.
• The new ownership deal is valued in the tens of millions of dollars and involves Hollywood producer Robert Simonds.
• NSO’s headquarters will remain in Israel under its defense ministry’s supervision, despite U.S. control.

The Digital Arms Dealer Changes Hands

Imagine a set of digital lockpicks so precise they can slip undetected into the world’s most secure smartphones. For years, NSO Group’s Pegasus spyware has been just that - a cyber tool wielded by governments to bypass privacy and peer directly into the lives of targets. Now, in a twist that’s triggering alarms and applause in equal measure, control of this infamous company has shifted to American hands.

The new deal, reportedly worth tens of millions of dollars, places a U.S. investor group - fronted by Hollywood producer Robert Simonds - at the helm. While the company’s headquarters and regulatory oversight remain firmly in Israel, the move marks a dramatic shift in the saga of a firm whose software has become a global symbol of digital surveillance run amok.

From Blacklists to Boardrooms: A Troubled History

Founded in 2010, NSO Group rocketed to notoriety with Pegasus, a spyware tool that can invisibly infect smartphones, intercepting texts, calls, emails, and even activating microphones or cameras. NSO has long insisted its technology is meant for fighting crime and terrorism. But investigations by organizations like Citizen Lab and Amnesty International have documented its use against journalists, human rights defenders, and opposition figures in countries from Mexico to Morocco, India to the United Arab Emirates.

The company’s ownership has shifted several times - first to U.S. private equity firm Francisco Partners, then back to its Israeli founders with European backing, and most recently managed by California-based Berkeley Research Group. The U.S. government blacklisted NSO in 2021 after revelations Pegasus had been used to target U.S. officials. Lawsuits followed, including a landmark case awarding Meta hundreds of millions in damages over Pegasus-enabled hacks.

Spyware, Sovereignty, and the Trust Problem

The new American ownership raises thorny questions: Will U.S. investors enforce stricter controls, or merely provide a fresh coat of respectability? NSO says the deal won’t affect its Israeli regulatory obligations, but critics like Citizen Lab’s John Scott-Railton warn that distancing the company from its founders could make it even harder to hold accountable.

Meanwhile, the global market for spyware is booming, with Pegasus remaining the gold standard for covert phone hacking. The U.S. itself has struggled to prevent the misuse of such tools, and the potential for Pegasus to be sold to local police or intelligence agencies remains a live concern. For now, NSO’s future - like the spyware industry’s ethics - remains shrouded in ambiguity.

WIKICROOK

• Pegasus: Pegasus is advanced spyware by NSO Group that covertly accesses and controls smartphones, often used in government surveillance and intelligence operations.
• Spyware: Spyware is software that secretly monitors or steals information from your device without your consent, putting your privacy and data at risk.
• Entity List: The Entity List is a US government list of foreign entities restricted from receiving certain exports due to national security or policy concerns.
• Zero: A zero-day vulnerability is a hidden security flaw unknown to the software maker, with no fix available, making it highly valuable and dangerous to attackers.
• Private equity: Private equity firms invest in and manage private companies, aiming to increase their value through restructuring, cost-cutting, or strategic improvements.