Capital One announced its agreement to buy Discover Financial Services for $35.3 billion.
Undoubtedly, Capital One-Discover will be a formidable player in payments, and banking more broadly, and reshape the competitive dynamics for card issuers, financial institutions, and networks. The acquisition will have far-reaching implications for market constituents, potential regulatory actions, and competitor responses that will alter the payments landscape.
While Capital One and Discover provided great summary information during an investor call tied to the announcement, numerous questions still exist given the recency of the news and initial market reactions.
SRM weighs in on this bold move in the world of consumer cards.
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