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DADO RUVIC/Reuters
- Elon Musk’s X has appointed Mahmoud Reza Banki as the new chief financial officer.
- Banki, previously an executive at Tubi, was granted a presidential pardon by Donald Trump in 2021.
- X is grappling with financial issues, such as falling ad revenue and a notable drop in valuation.
Elon Musk’s X has named Mahmoud Reza Banki as its new chief financial officer. Banki, who formerly held an executive position at Tubi and received a presidential pardon from Donald Trump, steps into this pivotal role during challenging times for the platform.
From 2017 until July 2023, Banki served as both the chief financial officer and chief strategy officer at Tubi. He has since updated his LinkedIn profile to reflect his new appointment at X.
This marks the first time X has publicly appointed a CFO; prior to this decision, various executives had temporarily filled the role since Musk acquired the platform for $44 billion two years ago. Current and former employees shared insights with The Wall Street Journal, which broke this story. Representatives from X did not respond immediately to Business Insider’s request for comments outside of regular business hours.
Background on Presidential Pardon
On January 19, 2021, Banki received clemency from President Trump after being convicted on charges related to false statements made back in 2010. He also faced allegations concerning violations of sanctions against Iran that were later dismissed.
Banki spent nearly two years incarcerated before being released following a successful appeal in November 2011. In an official statement regarding his pardon, the Trump administration noted: “In 2010, Dr. Banki was charged with monetary violations of Iranian sanctions and making false statements.”
The statement continued: “However, these felony charges have hindered Dr. Banki’s ability to fully reintegrate into society.” It acknowledged his commitment to community service over the years while expressing gratitude towards America.
A total of 73 individuals received pardons during Trump’s final days in office; another group of around 70 had their sentences commuted alongside them.
According to information on his personal website, he emigrated from postwar Iran in the late ’90s at age eighteen seeking opportunities associated with what he termed “the American dream.” His academic credentials include graduating from UC Berkeley with dual majors followed by earning a Ph.D. from Princeton before joining McKinsey & Company in New York City back in 2005.
The sentiment expressed on his website regarding receiving clemency reads: “A mix of joy over justice finally served along with sadness reflecting upon past struggles—exhaustion throughout my journey but ultimately thankful for lifting such heavy burdens off my shoulders.”
Financial Challenges Confronting X
The timing of Banki’s appointment comes amid significant challenges facing X since Elon Musk took control last year.
The company has seen its advertising revenues plummet as several major brands have withdrawn their content from the platform while efforts continue toward regaining lost advertisers’ trust.
A report published by market research firm Kantar revealed that approximately one-quarter (26%) of surveyed advertisers plan reductions in spending through next year (2025).
X’s valuation has also taken considerable hits; Fidelity reported earlier this year that it had lost more than seventy-one percent (71%) since Musk acquired it back October last year.
The Wall Street Journal highlighted that Musk’s acquisition turned out to be one of banks’ worst buyout financing deals post-2008 recession due largely due $13 billion loans remaining stagnant within bank balance sheets.
Musk envisions transforming X into an all-encompassing application akin to WeChat—integrating diverse features allowing users comprehensive management over their finances directly through its interface.
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