Capital One Is Buying Discover Financial
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Interesting.
https://www.wsj.com/finance/capital-one-is-buying-discover-financial-sources-say-a7c43dd2
Capital One said it will buy Discover Financial Services DFS -0.21%decrease; red down pointing triangle for more than $35 billion, a deal that will marry two of the largest credit-card companies in the U.S.
Under the terms of the all-stock deal, Discover shareholders are set to receive 1.0192 Capital One shares for each Discover share, representing a premium of about 27% based on Discover’s closing price Friday. After the deal closes, Capital One shareholders will hold roughly 60% of the combined company, with Discover shareholders owning the rest.
Capital One is making a big bet at a booming time in the credit-card sector. More consumers are moving from paying with cash to cards as a result of generous rewards programs and the digitization of commerce—a transition that accelerated with the pandemic. A recent increase in credit-card debt has provided a further boost to issuers.
I didn't realize that Capital One is a major player.
Capital One, the ninth-largest bank in the country and a major credit-card issuer, uses Visa and Mastercard for most of its cards. The bank plans to switch at least some of its cards to the Discover network, while continuing to use Visa and Mastercard on others. Those larger networks have more merchant acceptance abroad than Discover does.
Capital One also plans to maintain the Discover brand on the cards and network—assuming regulators sign off and the deal is consummated.
Discover, based in Riverwoods, Ill., is an online institution so the takeover wouldn’t come with physical bank branches, except for one location in Delaware.
Riverwoods is a sleepy, small northern Chicago suburb. Affluent.
Population: 3790
Median Income: $159K -
@Jolly said in Capital One Is Buying Discover Financial:
And the big get bigger.
Don't care for it.
Barry had the right idea to bust up the big banks. Too bad Timmy didn't listen.
The Occupy Wall Street movement also had the right idea to bust up the big banks.
Liz also had the right idea to rein in the big banks with the CFPB.
Ditto Chris, Barney, and Bernie.
The Tea Partiers came along and weakened Barry's hand.
Donny did bupkis to bust up or rein in the big banks. Sad.
