Capital One Acquires Discover; Gains More Control Over Credit Cards, Payments Technology
• Capital One is acquiring Discover Financial Services, giving it more control over its credit card program and access to financial technology • The acquisition provides Capital One a larger global role in the future of payments • It could lead Capital One to operate more like a closed-loop system similar to American Express • Capital One shares traits with stocks Warren Buffett likes low valuation, consumer-facing • The deal expands Capital One's scale and could make it more competitive in the mass credit card market