Here's a fun thing about politics: you can believe a candidate would be terrible for your state and still write them a check. You just need a good reason. Or, if you're Steve Hilton, you need what he calls a 'protection money' racket.

The Republican California gubernatorial candidate went after Meta Platforms Inc. (META) CEO Mark Zuckerberg over the company's $1 million donation to Democratic candidate Xavier Becerra. Hilton's argument is essentially: Mark, you know this guy would wreck California business. So why the check?

Hilton said he knows Zuckerberg and Meta executives believe Becerra would be 'a disaster' for the state's businesses and economy, but donated the money anyway. The Republican characterized the payment as an effort to secure favorable treatment, alleging corporations are paying for 'protection money' under California's ruling political establishment. He also criticized Zuckerberg for allegedly seeking 'Meta carve-outs' from a potential one-party government.

'The sad thing is that your business may be one of the few that can continue to operate here, and you may be one of the few that can afford to live here!' he wrote, addressing the Meta CEO.

Hilton warned that continued Democratic rule could hurt businesses and make California unaffordable for most people. 'The business exodus of recent years could turn into a stampede,' he wrote.

Meta did not immediately respond to MarketDash's request for comments.

The Check And The Calendar

The allegation followed a New York Post report that a Meta-backed super political action committee made a last-minute $1 million contribution to Becerra's California gubernatorial campaign. The report described the money as coming from a super PAC backed by Zuckerberg, placing the contribution in the final stretch of the campaign.

Mobilizing Economic Transformation Across (META) California donated nearly $1 million to Becerra's campaign in five installments between Oct. 20 and 27, bringing its total contributions to more than $2.2 million, the report stated, citing campaign finance records.

Becerra, former HHS Secretary under the Biden administration, is running against Hilton in the race to succeed California Governor Gavin Newsom.

Why A Governor's Race Matters To A Social Media Giant

California's gubernatorial race matters to the tech industry because the state can shape regulations on AI, social media, and other sectors where major companies like Meta operate. That's the boring but real answer to why a super PAC with Meta's name on it cares about Sacramento.

And the relationship runs both ways. Last week, Meta agreed to grant Zuckerberg non-voting shares that he could sell to cover a potential multibillion-dollar California billionaire wealth tax, in exchange for an eight-year commitment to remain in the state or wherever Meta is headquartered. The arrangement would allow Zuckerberg to retain voting control while potentially selling shares to meet the tax bill if voters approve Proposition 40. Meta's board committee said keeping Zuckerberg in leadership is critical amid intensifying AI competition.

So you have a company negotiating its founder's tax exposure with one hand while its affiliated PAC writes checks in a governor's race with the other. Hilton would call that protection money. Meta would probably call it civic engagement. Either way, the check cleared.

Price Action: Year-to-date, Meta's stock has declined about 7%. The stock fell about 1.6% on Friday.