Billionaire entrepreneur Stephen Cloobeck has withdrawn from the 2026 California governor race, announcing his full endorsement of Democratic Congressman Eric Swalwell. The surprise move reshapes the early dynamics of a crowded field competing to succeed Governor Gavin Newsom, who is termed out next year.
Cloobeck, who built his fortune in the timeshare industry and initially invested more than $13 million into his campaign, said he originally decided to run because he believed the other candidates lacked clear plans. Earlier this year, he openly criticized the field for offering what he called “word salad” instead of real solutions.
That changed when Swalwell, a longtime Bay Area representative and national figure, officially entered the race last week. During a joint interview on CNN with host Elex Michaelson, Cloobeck shared that Swalwell’s entry offered a candidate he felt genuinely aligned with California’s needs.
“I’m dropping out of the race and supporting Eric Swalwell as the next governor of California,” Cloobeck said. “Eric’s a man of integrity, character, and strong values—a true leader.”
Swalwell, whose congressional work can be reviewed on his official House webpage, expressed gratitude for the endorsement and said Cloobeck’s business experience will be an important asset. “I look forward to drawing on Stephen’s experience as I take on the work of expanding housing, modernizing the state, and supporting small businesses in California,” Swalwell said.
Swalwell formally launched his gubernatorial campaign on Jimmy Kimmel Live!, positioning himself as a candidate focused on affordability, innovation, and pushing back against federal policies from the Trump administration when necessary—similar to the approach taken by Governor Newsom.
Despite his significant financial investment, Cloobeck’s support remained at just 1%–2% in polls. He now plans to shift his financial backing toward Swalwell’s effort.
The 2026 race remains one of the most competitive in the nation, with several high-profile Democrats in the running, including Katie Porter, Xavier Becerra, Antonio Villaraigosa, Betty Yee, Tony Thurmond, Ian Calderon, and Tom Steyer. Republican candidates include Riverside County Sheriff Chad Bianco and political commentator Steve Hilton.
Newsom has not yet endorsed a successor, keeping the statewide political landscape fluid as the race accelerates.
