Israeli spyware firm the NSO Group is considering shutting down its Pegasus unit and selling the entire company to an American investment fund, Bloomberg reported, citing people familiar with the matter.
The company, previously blacklisted by the United States over its alleged involvement in actions that threaten the country's national security, has been facing the risk of defaulting on its debts. Currently, per Bloomberg, several options are on the table, including refinancing or outright sale.
Two American investment funds are being considered as potential new owners. The discussions, according to the sources, involve mulling over a scenario of them taking over and shutting down the Pegasus unit. Then, the funds reportedly would pour $200 million in fresh capital in order to use Pegasus' know-how for making "strictly defensive cyber security services" or "perhaps develop the Israeli company’s drone technology".
The spyware firm found itself in hot water after its Pegasus technology was widely reported to have been used in order to track thousands of journalists, politicians, and activists around the world. In early December, The Washington Post reported that the spyware had been used to track the gadgets of 11 US officials working in East Africa.
Citing national security threats, Washington moved to blacklist NSO - something that appeared to drive the company to the verge of default. The company said it was "alarmed" by the decision, insisting that its "technologies align with the interests and policies of US national security, and aid combating terrorism and crime".
The tech company Apple also cracked down on NSO, suing it for allegedly targeting users of its devices and seeking to permanently ban the use of Apple products by the Israeli firm.