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Kevin Paffrath, Kevin Paffrath smiles for a selfie in front of the California State Capitol in Sacramento on Friday, July 16, 2021.
Kevin Paffrath via AP

Last year at this time, Kevin Paffrath was focused on his YouTube channel, where his half-million-plus followers could tune in for daily commentary on housing, stocks and stimulus checks. It earned him nearly $10 million over the last 12 months.

Now, the 29-year-old former real estate broker is following Gov. Gavin Newsom around his home state. It’s the best way he can think of to draw attention to his unlikely effort to replace Newsom in the upcoming recall election on Sept. 14.

Paffrath is a registered Democrat and self-declared centrist who voted for Joe Biden in the 2020 presidential election. While he’s highly critical of Newsom and says he’s been a “failed leader,” Paffrath is equally concerned that the Democratic Party has no emergency plan.

Should more than half of California voters support the recall on their ballots, the next governor would be whichever of the 46 successor candidates gets the most votes, making it much easier for an outsider to win. Paffrath is one of the nine candidates listed as a Democrat, but party leaders are urging a “No” vote to the recall effort and saying voters should skip the second question asking who should be governor if the recall succeeds.

“It was mind-blowing to us that they didn’t put at least somebody in, so that way, worst case, they had a hail mary,” Paffrath said in an interview on Friday over a coffee, after attending a Newsom press event in San Francisco.

In an early August poll by Survey USA, Paffrath had the most votes in the field of replacements, with 27%. The next six candidates are all Republicans, including conservative talk show host Larry Elder and reality TV star and former Olympic athlete Caitlyn Jenner.

“We think in the last two weeks of this campaign if the recall looks more and more likely, the Democratic party will be forced to pick a Hail Mary back-up candidate,” Paffrath said. “Given that we’re No. 1 in the polls, we hope that’s us.”

California Governor Gavin Newsom speaks with media at a long-standing encampment along Highway 80 in Berkeley, California, August 9, 2021.
John G. Mabanglo | Pool | Reuters

Democrats are right to be nervous.

A poll conducted by the University of California, Berkeley, and the Los Angeles Times in late July showed 51% of registered voters opposed the recall, with 36% in favor. But among likely voters, the gap favoring Newsom’s retention narrowed to three percentage points.

The anti-recall movement has raised about $51 million, almost eight times as much as the side trying to oust Newsom. Netflix CEO Reed Hastings has contributed $3 million in support of the governor.

Donors can contribute an unlimited amount for or against the recall, but only up to $32,400 in support of any specific replacement candidate. Paffrath said he’s raised close to $400,000 and has put in about $200,000 of his own money. The average donation is $70, he said.

“We don’t have the war chest that Newsom does, so we have to do everything in our power with grassroots and social media,” Paffrath said.

For example, Paffrath paid his brother-in-law, an app developer, to build his “Meet Kevin” app. And he’s trying to get in front of the media as much as possible. Most of his ad spending is via text message to let voters know there’s a Democratic alternative.

On Friday, Paffrath hung out outside Manny’s restaurant in San Francisco as Newsom spoke inside to the press. Dressed in a navy suit with a purple tie, Paffrath made himself easy to spot for reporters. He said he’s careful not to be disruptive at the events.

“We have to combat, this ‘Oh yeah he’s a YouTuber, he’s a prankster,'” Paffrath said. “We stand there very respectfully and reporters recognize us. They talk to us.”

From San Francisco, he’s following Newsom to Los Angeles and San Diego, and possibly beyond.

How it started

The recall effort picked up momentum during the pandemic as frustration mounted about the state’s shutdown of schools and small businesses, and the slow pace of the reopening even as Covid-19 cases and hospitalizations plummeted.

Newsom critics pounced at the opportunity to highlight the worsening homeless problem and increasing crime rates while taxes and living costs remained among the highest in the country. Paffrath said he wasn’t an initial proponent of the recall and didn’t get involved until it was well underway.

“The reason I think folks are frustrated is we pay our taxes, then we look up to see what our government is doing for us with the services we’re paying for,” he said. “And we see people dying on the street. We see blight. That’s why people are leaving.”

Paffrath, who lives with his wife and two young sons in Ventura, about 70 miles from Los Angeles, has made addressing the homeless issue his top agenda item. His proposal is to build new emergency facilities and lease commercial and office buildings, including many that have been vacated during the pandemic, to set up mass spaces with cots and small rooms, supported by staffing from the National Guard.

His aim is to get all of California’s 160,000 homeless people off the streets in 60 days at an eventual cost of $10 per person per day, covering food, medical support and bathrooms.

Paffrath has equally ambitious — some may say outlandish — goals for new types of “future” schools, a system of underground tunnels to alleviate traffic problems and the building of Las Vegas-style casinos as part of a plan to fully legalize gambling.

He also recognizes the existential threat posed by fires and droughts. He advocates spending on controlled burns and a pipeline from the Mississippi River to double water flow to the Colorado River. When it comes to solar plants, he wants to incentivize companies to stay in California rather than going elsewhere.

“I’m tired of hearing about Tesla building solar panels in New York and Nevada,” he said. “Those should be in California.”

$10 million on YouTube

Paffrath’s fans are used to hearing him opine on such matters. He now has almost 150,000 Twitter followers and 1.7 million on YouTube. Regular topics include interest rates, the crypto economy and politics.

Paffrath got his start in real estate a little over a decade ago by teaching people how to invest in the market. He became a broker and started buying property, then took his teaching experience and market knowledge to YouTube. By 2018 was making enough money — a couple thousand dollars a day — to let his broker license expire and to get out of sales.

At the coffee shop on Friday, he pulled out his phone and navigated to his YouTube earnings dashboard. Over the past year, the page showed, his ad revenue on the site topped $3.5 million. Affiliate revenue and money he makes from courses on building wealth brought in an additional $6 million or so, he said.

Kevin Paffrath on the campaign trail
Ari Levy | CNBC

But his focus now is on politics. Paffrath said he’ll run in 2022 even the recall is unsuccessful or if another replacement candidate wins. That’s as far out as he’s projecting.

“I don’t want to be a career politician,” he said. “I want to fix California.”

He also wants to assure Democrats that he’s not just using their party label because it gives him the best chance to win. With a legislature that’s three-quarters Democratic, he said it’s important to start on things that the majority cares deeply about, like the homeless problem.

Control of the U.S. Senate could also be at stake. Dianne Feinstein, the state’s senior senator, is the oldest member of the chamber at 88. She’s not up for reelection until 2024, and questions have been swirling around whether she’ll retire before then.

If so, the governor would get to pick her temporary successor. The Senate is currently at a 50-50 split, with Vice President Kamala Harris in position to cast deciding votes when needed.

Paffrath made it clear he would pick a Democrat.

“I’m not going to burn the party,” he said. “I don’t want people to think that just because I’m a recall candidate I’m going to go in there and do what Republicans say they want to do, start cutting things and throwing around the furniture. It’s not going to work. You’ve got to respect the legislature.”

WATCH: California Gov. Newsom faces recall

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Google agrees to pay Texas $1.4 billion data privacy settlement

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Google agrees to pay Texas .4 billion data privacy settlement

A Google corporate logo hangs above the entrance to the company’s office at St. John’s Terminal in New York City on March 11, 2025.

Gary Hershorn | Corbis News | Getty Images

Google agreed to pay nearly $1.4 billion to the state of Texas to settle allegations of violating the data privacy rights of state residents, Texas Attorney General Ken Paxton said Friday.

Paxton sued Google in 2022 for allegedly unlawfully tracking and collecting the private data of users.

The attorney general said the settlement, which covers allegations in two separate lawsuits against the search engine and app giant, dwarfed all past settlements by other states with Google for similar data privacy violations.

Google’s settlement comes nearly 10 months after Paxton obtained a $1.4 billion settlement for Texas from Meta, the parent company of Facebook and Instagram, to resolve claims of unauthorized use of biometric data by users of those popular social media platforms.

“In Texas, Big Tech is not above the law,” Paxton said in a statement on Friday.

“For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services. I fought back and won,” said Paxton.

“This $1.375 billion settlement is a major win for Texans’ privacy and tells companies that they will pay for abusing our trust.”

Google spokesman Jose Castaneda said the company did not admit any wrongdoing or liability in the settlement, which involves allegations related to the Chrome browser’s incognito setting, disclosures related to location history on the Google Maps app, and biometric claims related to Google Photo.

Castaneda said Google does not have to make any changes to products in connection with the settlement and that all of the policy changes that the company made in connection with the allegations were previously announced or implemented.

“This settles a raft of old claims, many of which have already been resolved elsewhere, concerning product policies we have long since changed,” Castaneda said.

“We are pleased to put them behind us, and we will continue to build robust privacy controls into our services.”

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Virtual chronic care company Omada Health files for IPO

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Virtual chronic care company Omada Health files for IPO

Omada Health smart devices in use.

Courtesy: Omada Health

Virtual care company Omada Health filed for an IPO on Friday, the latest digital health company that’s signaled its intent to hit the public markets despite a turbulent economy.

Founded in 2012, Omada offers virtual care programs to support patients with chronic conditions like prediabetes, diabetes and hypertension. The company describes its approach as a “between-visit care model” that is complementary to the broader health-care ecosystem, according to its prospectus.

Revenue increased 57% in the first quarter to $55 million, up from $35.1 million during the same period last year, the filing said. The San Francisco-based company generated $169.8 million in revenue during 2024, up 38% from $122.8 million the previous year.

Omada’s net loss narrowed to $9.4 million during its first quarter from $19 million during the same period last year. It reported a net loss of $47.1 million in 2024, compared to a $67.5 million net loss during 2023.

The IPO market has been largely dormant across the tech sector for the past three years, and within digital health, it’s been almost completely dead. After President Donald Trump announced a sweeping tariff policy that plunged U.S. markets into turmoil last month, taking a company public is an even riskier endeavor. Online lender Klarna delayed its long-anticipated IPO, as did ticket marketplace StubHub.

But Omada Health isn’t the first digital health company to file for its public market debut this year. Virtual physical therapy startup Hinge Health filed its prospectus in March, and provided an update with its first-quarter earnings on Monday, a signal to investors that it’s looking to forge ahead.

Omada contracts with employers, and the company said it works with more than 2,000 customers and supports 679,000 members as of March 31. More than 156 million Americans suffer from at least one chronic condition, so there is a significant market opportunity, according to the company’s filing.

In 2022, Omada announced a $192 million funding round that pushed its valuation above $1 billion. U.S. Venture Partners, Andreessen Horowitz and Fidelity’s FMR LLC are the largest outside shareholders in the company, each owning between 9% and 10% of the stock.

“To our prospective shareholders, thank you for learning more about Omada. I invite you join our journey,” Omada co-founder and CEO Sean Duffy said in the filing. “In front of us is a unique chance to build a promising and successful business while truly changing lives.”

WATCH: The IPO market is likely to pick up near Labor Day, says FirstMark’s Rick Heitzmann

The IPO market is likely to pick up near Labor Day, says FirstMark's Rick Heitzmann

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Google would need to shift up to 2,000 employees for antitrust remedies, search head says

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Google would need to shift up to 2,000 employees for antitrust remedies, search head says

Liz Reid, vice president, search, Google speaks during an event in New Delhi on December 19, 2022.

Sajjad Hussain | AFP | Getty Images

Testimony in Google‘s antitrust search remedies trial that wrapped hearings Friday shows how the company is calculating possible changes proposed by the Department of Justice.

Google head of search Liz Reid testified in court Tuesday that the company would need to divert between 1,000 and 2,000 employees, roughly 20% of Google’s search organization, to carry out some of the proposed remedies, a source with knowledge of the proceedings confirmed.

The testimony comes during the final days of the remedies trial, which will determine what penalties should be taken against Google after a judge last year ruled the company has held an illegal monopoly in its core market of internet search.

The DOJ, which filed the original antitrust suit and proposed remedies, asked the judge to force Google to share its data used for generating search results, such as click data. It also asked for the company to remove the use of “compelled syndication,” which refers to the practice of making certain deals with companies to ensure its search engine remains the default choice in browsers and smartphones. 

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Google pays Apple billions of dollars per year to be the default search engine on iPhones. It’s lucrative for Apple and a valuable way for Google to get more search volume and users.

Apple’s SVP of Services Eddy Cue testified Wednesday that Apple chooses to feature Google because it’s “the best search engine.”

The DOJ also proposed the company divest its Chrome browser but that was not included in Reid’s initial calculation, the source confirmed.

Reid on Tuesday said Google’s proprietary “Knowledge Graph” database, which it uses to surface search results, contains more than 500 billion facts, according to the source, and that Google has invested more than $20 billion in engineering costs and content acquisition over more than a decade.

“People ask Google questions they wouldn’t ask anyone else,” she said, according to the source.

Reid echoed Google’s argument that sharing its data would create privacy risks, the source confirmed.

Closing arguments for the search remedies trial will take place May 29th and 30th, followed by the judge’s decision expected in August.

The company faces a separate remedies trial for its advertising tech business, which is scheduled to begin Sept. 22.

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