Two major donors stopped funding Republican presidential candidate Nikki Haley's campaign, saying the race for the party's nomination was effectively over and that Donald Trump will be the party nominee.
Trump issued a threat to donors on Wednesday night to stop funding Haley as he seeks to knock her out of the race before the next major primary race, in South Carolina on Feb. 24.
Metals magnate Andy Sabin said in an interview that the Republican race was now essentially over, given that Haley had not been able to pull off an upset in the New Hampshire primary on Tuesday.
"Haley needs to drop out," Sabin said late on Wednesday. "Regardless of what anyone tells you, her money is going to dry up. Why would you fund someone who you know has no chance?"
Haley's campaign did not immediately respond to a request for comment.
Trump's back-to-back wins in the Iowa and New Hampshire contests have made his march to the Republican nomination almost certain as he looks ahead to a likely general election rematch with Democratic President Joe Biden in November.
Another major Haley donor, Reid Hoffman, the billionaire co-founder of online business and employment platform LinkedIn, also does not plan to keep funding her campaign.
Dmitri Mehlhorn, a Hoffman adviser, said in a statement to Reuters that Haley no longer had a path to the nomination.
"The only way I can see (a path) happening is if Trump has a 'senior moment,' and she's able to exploit it to persuade GOP voters that he's lost it," Mehlhorn said.
CNBC was first to report that Hoffman was not going to give any more money to Haley's campaign.
TRUMP DONOR THREAT
Haley, Trump's last surviving Republican rival, has vowed to carry on, triggering a warning to her donors from Trump on his social media account on Wednesday night.
On the Truth Social app, Trump, who is furious at Haley for refusing to drop out, said anybody making a contribution to Haley would be "permanently barred" from his political orbit.
Haley responded on social media platform X with a link to donate to her campaign: "Well in that case ... donate here. Let's Go," she wrote.
A Haley campaign spokesperson said they had seen a "surge" as a result of her post. The spokesperson did not immediately respond to a request to share fundraising figures.
Threatening Haley's donors is just one tactic Trump and his campaign are using to pressure the former South Carolina governor to quit.
Trump's team has also been courting donors, urging them to support him and in at least one case promising one-on-one meetings with Trump at his Mar-A-Lago Florida estate.
Some Haley donors brushed off Trump's threat.
"Whatever," said Eric Levine, a New York litigator.
"He sounds desperate," said venture capitalist Tim Draper.
Retail businessman Art Pope said he was still backing Haley's bid.
Sabin said Trump's threat shows that he is a "nasty" person. "It just does more harm," he added.
Still, negative headlines about donors dropping Haley could dent her momentum and ability to keep raising funds to sustain her campaign.
