The Value of the NSO Group? Probably More Than Zero

April 19, 2022

The Financial Times published “NSO Group Deemed Valueless to Private Equity Backers.” The orange newspaper stated that a consulting firm studied the intelware outfit and provided information with this startling number. There’s a legal dust up underway, and my hunch is that legal eagles will flock to this situation: Alleged misuse of the Pegasus system, financial investments, and the people involved in assorted agreements. The story points out that NSO Group is “not a party” to this particular lawsuit. The folks funding the legal eagles are a consulting outfit called Berkeley Research Group. An outfit called Novalpina Capital convinced some to put money into the cyber gold mine. Then the PR spotlight illuminated NSO Group and a torrent flowed downhill knocking down some once impregnable structures. Plus the FT’s article references to an outfit called Integrity Partners who, according to the Financial Times, are willing to buy NSO Group for several hundred million dollars. Is this a good deal? In my opinion, something is better than zilch.

An unnamed NSO Group spokesperson indicated that the NSO Group’s system was of interest to many customers. If this is true, wasn’t the most recent license deal inked in mid 2021 for the platform? My thought is that the company’s proprietary technology would be of interest to other intelware firms interested in obtaining the licensee base and the platform which might benefit from newer, more sophisticated geo-spatial functionality which I will describe in my OSINT lecture at the US National Cyber Crime Conference on April 26, 2022. Sorry, the info is not for a free blog, gentle reader.

In my opinion, the referenced write up presents a fairly chaotic snapshot of the players, the valuation, and the legal trajectory for this matter. We need to bear in mind that NSO Group is hitting up the US Supreme Court and dealing with its Tim Apple issues.

One thing is crystal clear to me: The NSO Group’s misstep is now sending out concentric pulses which are extremely disruptive to entities rarely in the public spotlight. This is unfortunate and underscores why the Silicon Valley Tel Aviv style is not appreciated in some upscale social circles.

Stephen E Arnold, April 19, 2022

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