NSO considering killing Pegasus spyware under financial & lawsuit pressure
NSO Group, the security firm behind the Pegasus spyware used to attack iPhones used by journalists and government critics, is allegedly considering bailing out of the scandal by shutting down the unit in question.
The Israel-based NSO Group has faced considerable criticism and fallout after the discovery its Pegasus spyware was misused by governments to spy on journalists, human rights activists, and other people of interest to oppressive governments. So much so that it is apparently looking for an exit from the situation completely.
The company has allegedly been in discussions with investment funds to potentially refinance or sell the company, anonymous sources of Bloomberg claim. Advisers from Moelis & Co are working with NSO Group on the matter, while unnamed lenders are being advised by lawyers from Willkie Farr & Gallagher.
While unidentified, the potential buyers include a pair of American funds, that would control and shut down Pegasus following the transaction. In return, the funds would theoretically provide some $200 million in capital to NSO Group, which could help refocus the company's IP and technology to make it a purely defensive security firm, one that could also expand its drone technology effort.
NSO's deliberations follow after the U.S. Commerce Department blacklisted the company, despite claims by NSO that its "technologies support U.S. national security interests and policies." Apple has also sued NSO Group to prevent it from using its products and services.
Pegasus used various exploits and vulnerabilities in iOS to install intrusive spyware onto iPhones, with the software intended for use by governments and law enforcement against criminals. It became a scandal after the discovery that it was used by some authoritarian governments against potential dissidents and critics of oppressive regimes.
The security company is also in a position where it needs to pay back approximately $450 million in debt. A loan NSO issued in 2019 traded in November at 70 cents on the dollar, but bids on Monday were at 50 cents on the dollar.
NSO is already seeing a drop in revenue of 8% from 2018, with sales in 2021 expected to lie at around $230 million. With the shutdown of Pegasus, that revenue is expected to be cut in half.
Read on AppleInsider
The Israel-based NSO Group has faced considerable criticism and fallout after the discovery its Pegasus spyware was misused by governments to spy on journalists, human rights activists, and other people of interest to oppressive governments. So much so that it is apparently looking for an exit from the situation completely.
The company has allegedly been in discussions with investment funds to potentially refinance or sell the company, anonymous sources of Bloomberg claim. Advisers from Moelis & Co are working with NSO Group on the matter, while unnamed lenders are being advised by lawyers from Willkie Farr & Gallagher.
While unidentified, the potential buyers include a pair of American funds, that would control and shut down Pegasus following the transaction. In return, the funds would theoretically provide some $200 million in capital to NSO Group, which could help refocus the company's IP and technology to make it a purely defensive security firm, one that could also expand its drone technology effort.
NSO's deliberations follow after the U.S. Commerce Department blacklisted the company, despite claims by NSO that its "technologies support U.S. national security interests and policies." Apple has also sued NSO Group to prevent it from using its products and services.
Pegasus used various exploits and vulnerabilities in iOS to install intrusive spyware onto iPhones, with the software intended for use by governments and law enforcement against criminals. It became a scandal after the discovery that it was used by some authoritarian governments against potential dissidents and critics of oppressive regimes.
The security company is also in a position where it needs to pay back approximately $450 million in debt. A loan NSO issued in 2019 traded in November at 70 cents on the dollar, but bids on Monday were at 50 cents on the dollar.
NSO is already seeing a drop in revenue of 8% from 2018, with sales in 2021 expected to lie at around $230 million. With the shutdown of Pegasus, that revenue is expected to be cut in half.
Read on AppleInsider
Comments
Maybe if they actually paid their security researchers properly, they wouldn't have this problem... a 0-day, no-click infection on the latest software should easily get a payout of multiple millions considering what black hat agencies would pay for it... and all Apple pays is $1M, and that's assuming they don't find some reason to de-escalate the level of severity in order to pay less...
Apple should be paying more than black hats, not saying they will pay a certain amount and not even paying that (or fixing the flaws)
Apple really dropped the ball on this.
This whole deal strikes me something like a ransomware attack - NSO creates a nasty bit of attack-ware, then says "for $200 million we'll drop it." Seems like the ethical thing to do would be to drop it without asking for $200 million.
Democratic, transparent, and free? Nice goals but like peeing into a hurricane. We are already living in the surveillance society where privacy and transparency are just words. Just in the last few days we learned that up to 20 journalists were spied on by the DHS. Name one ‘democratic’ government that is truly transparent and respects privacy. And those governments are supposed to be the good guys.
No, nobody "dropped the ball", not any more than the fact that security defects exist in all software due to human fallibility. 0-day exploits exist for ALL platform, and nobody disputes that.