Hollywood producer Simonds and chewing gum heir Wrigley face obstacles in potential acquisition of NSO
Hollywood producer Simonds and chewing gum heir Wrigley face obstacles in potential acquisition of NSO
The Guardian reported of their interest in purchasing the Israeli spyware company, but capital constraints and regulatory approvals are likely to stand in their way
Hollywood producer Robert Simonds, who was recently appointed to the board of directors of NSO's parent company, and William Wrigley, former CEO and chairman of Wrigley, are exploring the possibility of acquiring Israeli spyware company NSO, according to The Guardian. However, sources familiar with the matter believe that Simonds faces significant challenges in raising the necessary capital for the purchase, and it is unlikely that the Ministry of Defense will approve his involvement in the company.
Calcalist revealed last month that Simonds is one of the only two directors in NSO's holding company, Dufresne Holding, alongside Omri Lavie, the founder of NSO who also owns all the shares of the holding company.
Simonds, known for founding STX Entertainment, an independent production company, has produced films featuring notable actors such as Adam Sandler, Steve Martin, Matthew McConaughey, and Reese Witherspoon. Wrigley, who is an heir to his family's chewing gum fortune and an investor in the cannabis industry, has previously also invested in Simonds' STX.
Documents reviewed by The Guardian reveal that Simonds and Wrigley have conducted due diligence for a potential acquisition of NSO. One option being considered by Simonds is buying the debt from remaining lenders, which would involve transferring NSO's assets, including Pegasus, to a new company. However, potential obstacles, including opposition from Israeli authorities, raise significant question marks regarding the path forward. Simonds is reportedly engaged in discussions about taking over NSO's assets but has not made a final decision. Simonds' connection to China, through his business dealings with Chinese entities, and his residence in California, where NSO is facing lawsuits, pose additional challenges for his involvement with NSO and the approval from the Ministry of Defense.
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Sources suggest that Simonds' chances of raising sufficient funds to acquire NSO are low, despite his experience in business and fundraising. Furthermore, the Ministry of Defense is unlikely to approve his appointment to the board or permit the purchase due to concerns over his connections to China and potential exposure to sensitive information in ongoing lawsuits. According to one industry expert, the Ministry seeks to ensure NSO is in capable hands and views a Hollywood figure as an unsuitable choice.
