White House warns US firms interested in acquiring Israeli spyware company

The Biden administration has warned that any attempted takeover by an American company of Israel's NSO Group, the maker of one of the world's most sophisticated cyber weapons, could prompt a review of whether the acquisition posed a counterintelligence threat to the US government.

- Stephanie Kirchgaessner

The statement by the National Security Council (NSC) comes after the Guardian reported that Robert Simonds, a Hollywood financier, was exploring a possible bid to take control of NSO's assets, including Pegasus, the company's spyware.

Simonds was recently appointed to serve as a director of the Luxembourg-based holding company that controls NSO, and people familiar with the situation say he is considering ways to take over some of NSO's assets. He has privately discussed trying to put NSO's sought-after technology exclusively in the hands of "Five Eyes", the intelligence alliance that comprises the US, the UK, Canada, Australia and New Zealand, the sources said.

Any takeover of the company's assets would face significant hurdles in Israel, where NSO is closely regulated by the ministry of defence. But it would also face scrutiny in the US.