Billionaire Dem Donors Back Biden As GOP Heavyweights Shy Away From Trump, DeSantis

Topline

A coalition of wealthy Democratic donors united behind President Joe Biden in the wake of his Tuesday announcement he would seek a second term—while some mega donors on the other side of the aisle are unenthusiastic about the party’s top two candidates and others have expressed plans to stay out of the race altogether.

President Joe Biden smiles during a news conference with South Korea’s President Yoon Suk Yeol in … [+] the Rose Garden of the White House on Wednesday, April 26, 2023, in Washington. (AP Photo/Evan Vucci)

Key Facts

Billionaire LinkedIn co-founder Reid Hoffman and media mogul Haim Saban, both longtime Biden backers, said they would host fundraisers for the president, CNBC reported.

Dreamworks co-founder Jeffrey Katzenberg, who supported Biden’s 2020 campaign for president, is serving as co-chair of Biden’s 2024 campaign and told CNBC he believes Biden will raise more during the upcoming election cycle than he did during his previous campaign.

Other wealthy donors who are planning to support Biden include hedge fund executive Donald Sussman, Alexander Soros, the son of billionaire Democratic donor George Soros, and Charles Myers, former Evercore vice chairman and founder of Signum Global Advisors.

Meanwhile, GOP mega donors who previously supported former President Donald Trump have defected from the ex-president, including billionaire Estée Lauder heir Ronald Lauder, whose spokesperson told CNBC in November he wouldn’t support Trump, and Blackstone CEO Stephen Schwarzman, who told Axios after the midterm election he plans to support a 2024 Republican presidential candidate who is part of a “new generation of leaders.”

At least one billionaire mega donor, Citadel hedge fund CEO Ken Griffin, has cooled on his previous declaration of support for DeSantis, the New York Times reported Tuesday, citing Griffin’s disappointment with DeSantis’ statements that Russia’s war with Ukraine was a “territorial dispute.”

Former GOP donor and tech billionaire Peter Thiel is reportedly so pessimistic about the GOP field he plans to stay out of the 2024 election cycle altogether, Reuters reported, citing sources who said Thiel is particularly miffed by the GOP’s culture wars—which have been championed by DeSantis in Florida.

Contra

Some GOP mega donors expressed optimism that DeSantis could rally support of other wealthy Republican backers. Roy Bailey, former national co-chair of Trump’s campaign, predicted “the money is going to fly into DeSantis’ bank account if he gets into the race,” he told Bloomberg. Energy executive and former Trump donor Dan Eberhart also expressed confidence in DeSantis and said he plans to support him. “Republican donors have been ready for a new party standard bearer for a while now,” Eberhart reportedly said.

Key Background

Part of the reason that wealthy GOP donors have yet to rally around a single candidate is because the field is still forming, while Biden’s incumbent advantage makes him a shoe-in for the party’s nomination. Trump was the first GOP presidential candidate to declare his candidacy in November, and four challengers have since joined him, most recently former Arkansas Gov. Asa Hutchinson, who formally announced his campaign on Wednesday. Former Vice President Mike Pence, former Secretary of State Mike Pompeo, Sen. Tim Scott (S.C.) and former New Jersey Gov. Chris Christie are also weighing runs. New York grocery store and real estate magnate John Catsimatidis told Bloomberg recently that he would not back any candidate until after the Republican primary debates in August, but said he has issues with both Trump and DeSantis.

Tangent

Trump has eclipsed DeSantis in polls, despite a string of controversies since announcing his third run for the White House, including his indictment in Manhattan Criminal Court earlier this month and several other criminal investigations. DeSantis, meanwhile, has also suffered a series of political blows in recent weeks. Trump now has the backing of the majority of Florida’s GOP congressional delegation, some of whom told unflattering stories about DeSantis’ unfriendly and unsympathetic demeanor in explaining their support for Trump. The ex-president has flipped the script on the various investigations against him by claiming they are politically motivated “witch hunts,” a pitch that appears to be resonating with his voter base and fellow Republicans.

What To Watch For

When and if DeSantis will formally announce his candidacy. He is not expected to do so until after the conclusion of the Florida legislative session at the end of May.