Hollywood producer resigns from board of directors of NSO's parent company after 5 months
Hollywood producer resigns from board of directors of NSO's parent company after 5 months
Robert Simonds, who was brought to the board of directors at the initiative of NSO's creditors, may have been forced to resign because he didn't receive approval from the Israeli Ministry of Defense
Robert Simonds, the Hollywood producer appointed to the board of directors of NSO's parent company, left the board last week after only five months on the job. Simonds, who joined the board at the initiative of NSO's creditors, was supposed to lead significant funding round for the company based on his various business connections. His departure indicates the failure of these efforts.
Since February, controlling shares of spyware developer NSO have been held by Dufresne Holding, based in Luxembourg. This followed the withdrawal of shares by NSO's creditors, including Credit Suisse, Senator Investment Group, and Birch Grove Capital, who then transferred them to a new holding company owned solely by NSO founder Omri Lavie. The company still holds significant debt of half a billion dollars, which was loaned to it by creditors as part of the process to buy back shares from Francisco Partners.
Lavie was the sole director of Dufresne Holding, but in March, Simonds was appointed to the board of directors. A producer, Simonds films starred the likes of Steve Martin, Matthew McConaughey, Adam Sandler, and Jennifer Lopez. He is the founder of the independent production company STX Entertainment, which has received investment from China's Hony Capital, Chinese tech company Tencent, and Hong Kong-based telecommunications company PCCW. Alongside his entertainment work, he served on the board of directors of the Metropolitan Water District of Southern California, and as a director of the Heckmann Corporation, an entity that created and developed companies and projects in the water and fluid treatment sector. He was also a member of the advisory committee of the RAND Corporation's Center for Global Risk and Security and a trustee of the Natural History Museum of Los Angeles County, in addition to his role at Yale School of Management and the California Chamber of Commerce.
Calcalist previously reported that NSO's creditors requested his appointment to the board of directors, believing he could assist in raising funds, even though other informed sources doubted his ability to do so. In June, The Guardian reported that Simonds and William Wrigley, former CEO and chairman of manufacturer Wrigley Company, were exploring acquiring control of NSO, and that Simonds was in deep discussions about taking over NSO's assets. However, sources with knowledge in the matter believed that Simond’s chances of raising the required amount for the transaction were low.
Related articles:
- LA confidential: What’s a Hollywood producer doing on the board of NSO's parent company?
- Hollywood producer Simonds and chewing gum heir Wrigley face obstacles in potential acquisition of NSO
- Israel’s Public Defense Office demands that Ministry of Justice stop using spyware against citizens until legislation is passed
With Simonds' resignation from NSO's holding company board of directors, it seems that the funding efforts, as well as the possibility of acquiring the company have failed. It is also possible that Simonds was forced to resign due to not receiving approval from the Israeli Ministry of Defense for his appointment. This could be due to his business connections in China and his residence in California, where NSO is being sued by WhatsApp and Apple.
