Posted 2/20/2024, 3:15:00 PM
Capital One to Acquire Discover in $35B Deal, Raising Questions Around Payments Landscape
- Capital One acquiring Discover in a $35.3B deal, sparking questions around implications for Visa, Mastercard, Amex
- Combined company will have $630B in assets, with majority in various loan categories
- Deal makes sense for Capital One, though price tag is hitting its stock
- Capital One currently big issuer of Visa/Mastercard cards; transition away would likely be slow
- Deal gives Capital One optionality to negotiate down or away from Visa/Mastercard over time