{"id":2180145,"date":"2024-02-19T17:19:02","date_gmt":"2024-02-19T22:19:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-capital-one-to-acquire-discover-financial-services\/"},"modified":"2024-02-19T17:22:45","modified_gmt":"2024-02-19T22:22:45","slug":"report-capital-one-to-acquire-discover-financial-services","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-capital-one-to-acquire-discover-financial-services\/","title":{"rendered":"Capital One to acquire Discover Financial Services, according to report"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Freport-capital-one-to-acquire-discover-financial-services%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2180145&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<figure class=\"wp-block-image size-large is-resized\"><figcaption class=\"wp-element-caption\">The logo for \u2063consumer lending firm Capital One Financial Corp is seen on its headquarters on January\u2063 20,\u2064 2023 in McLean, Virginia. The company has\u2064 reportedly eliminated \u2064up to \u200c1,100 technology positions\u200d this week as its digital structure matures. \u200c \u2063(Photo \u200dby Win McNamee\/Getty Images)<\/figcaption><\/figure>\n<p>OAN\u2019s <a href=\"https:\/\/www.oann.com\/tag\/james-meyers\/\">James Meyers<\/a><br \/>2:05 PM \u2013 Monday, February 19, 2024<\/p>\n<p>Credit card issuer and Warren Buffet-backed consumer bank Capital\u200d One, will acquire the\u200c credit card lender Discover Financial Services, \u200baccording to a report \u200cfrom <em>The Wall\u2062 Street Journal<\/em>. <\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The reported move is expected to\u200c be finalized on Tuesday \u2063as Capital One has \u200cbeen\u2064 working with advisers to \u2064negotiate a deal \u2062to buy Discover. <em>Bloomberg<\/em> reported \u200con Monday that Capital \u2062One\u2062 was considering making \u200ban offer for Discover. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cDiscover has done a better job of bringing in a lot of deposits \u200dand [has] access\u2063 to \u2064a lot\u200d of institutions\u200d to run the debit card \u2063network and provide service. So \u200cit gives them a lot of deposit gathering ability, which particularly \u2062in \u2062the current \u200dmarket is enormously\u200d important,\u201d said David Schiff, West Monroe\u2019s head of consumer retail and banking.<\/p>\n<\/blockquote>\n<p>Discover has a \u2064market value of roughly $28 billion and <em>The Wall Street Journal\u2064 <\/em>reported \u2063that an\u2064 acquisition would be expected to value it at above the $28 billion. Meanwhile,\u200b Capital One\u2019s market value\u200d is \u200cjust over\u2064 $52 billion. <\/p>\n<p>Additionally, in January, Discover and Capital One \u2064reported declines in \u200dfourth-quarter profits \u200bof 62% and \u206243%, with bank declines resulting\u200d from bad\u200d loans as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-to-leapfrog-u-s-as-worlds-biggest-economy-by-2028-think-tank\/\" title=\"China to leapfrog U.S. as world\u2019s biggest economy by 2028 \u2013 think tank\">rising interest rates<\/a> have caused consumers to default on \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nasa-worker-sentenced-to-18-months-in-prison-after-lying-to-govt-for-pandemic-benefits\/\" title=\"NASA worker sentenced to 18 months in prison after lying to govt. for pandemic benefits\">credit card debt<\/a> \u200cand mortgages at a higher \u2064rate.<\/p>\n<p>Capital One \u2064uses Visa and Mastercard but plans to also offer some of\u200b its cards through the Discover Network, according to the\u200c report. \u2062The company also bought digital \u200bconcierge service Velocity \u2064Black,\u200d which is \u200ba \u2064premium credit card\u2062 and luxury market platform, in June of last year. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cIt\u2019s a good example of \u200cthe \u200crisk \u2062we\u2019re seeing in\u2063 the market, where\u2064 the competing\u2064 interests\u2063 from regulators for\u2064 increased control and rigor balance against the competitive demands \u2064that \u2064are\u200c being made \u2062quite clearly,\u2063 in terms of\u2063 the overall\u200c market,\u201d Schiff said.<\/p>\n<\/blockquote>\n<p>The \u2062latest merger would be one of the\u200d biggest deals announced so far this year. Synopsys bought Ansys for $35 billion \u200bin January and \u200bDiamondback Energy\u2019s \u2064$26\u200b billion deal to buy privately held oil and \u2063gas \u2063producer Endeavor Energy was announced last week. <\/p>\n<p>Stay informed! Receive breaking news\u200d blasts\u200b directly to your inbox for free. Subscribe here. <a href=\"https:\/\/www.oann.com\/alerts\">https:\/\/www.oann.com\/alerts<\/a><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\tShare this post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>A house fire \u200din Virginia kills one and injures \u206312 others. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Mike \u200dDavis<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Jobob<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Lara Logan<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>A group of 20 tech \u2062companies announced \u2062they \u2062will work \u200ctogether to\u200c prevent\u200c deceptive AI\u200c content from interfering with elections.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>OpenAI is working\u200d on a software that can <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-cut-throat-venezuelan-gangs-recruiting-from-migrant-shelters\/\" title=\"Venezuelan gangs recruit from migrant shelters, report says\">generate minute-long videos based<\/a>\u200d on \u200ctext prompts.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Activision Blizzard has been hit with a U.S. lawsuit claiming\u2064 it restricts competition\u200d for organized gaming involving \u201cCall of\u200b Duty.\u201d<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Amazon.com\u00a0has joined SpaceX and Trader Joe\u2019s in claiming that a U.S. labor \u200bagency\u2019s in-house enforcement\u2062 proceedings\u200b violate the U.S. Constitution.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What \u200crisks and \u2062challenges does Capital One\u2064 face in the\u2062 credit \u2063card market, and how does the decision to \u200cacquire Discover showcase \u200bits confidence in overcoming\u200d them<\/h2>\n<p><span>  \u2064 Credit card \u2064issuer and\u200b Warren Buffet-backed consumer bank Capital One is set\u200b to acquire credit\u200c card lender Discover Financial Services, according\u200c to a \u2063report \u200bfrom \u200cThe\u2064 Wall Street Journal. The deal\u200c is expected to be finalized on Tuesday, as Capital One has been working with \u200cadvisers to\u200b negotiate \u2064the acquisition.<\/p>\n<p>Bloomberg reported \u2064on Monday that Capital One was considering making\u2064 an \u2062offer for \u200dDiscover. \u200bThe \u2064reported move is seen as \u2062a \u2063strategic decision\u200c for Capital One, as Discover \u200dhas been successful in attracting deposits\u200d and has access to a wide range of institutions to\u200b run the debit card \u2064network. David Schiff,\u2062 West Monroe&#8217;s head of consumer retail and banking,\u2064 emphasized\u2063 the importance of Discover&#8217;s deposit gathering \u2064ability in the current market.<\/p>\n<p>Discover currently has a market value\u2063 of approximately $28 billion, and the acquisition is expected to \u200bvalue it\u2063 above this amount.\u200c In comparison, Capital One&#8217;s\u2064 market value is just over $52 billion. Both\u2062 companies recently \u2063reported declines\u2063 in fourth-quarter profits, with rising interest rates leading to \u2063increased consumer default on credit card debt and mortgages.<\/p>\n<p>Capital One\u2064 primarily uses \u200dVisa and Mastercard, but \u200bthe company plans to offer some \u2064of its\u2064 cards through the\u200b Discover \u2062Network as well.\u200b This move\u2062 will provide Capital One with additional options\u200b and diversification in the credit card market. Furthermore, Capital One acquired digital concierge service Velocity Black, a premium credit card and luxury market platform, in June of last year.<\/p>\n<p>This acquisition highlights the risks present in the market, as competing interests from regulators and changing market conditions \u2062continue to \u2062impact\u200b the \u200cfinancial industry. However, Capital One&#8217;s decision to \u2063acquire \u200dDiscover showcases its confidence \u200cin\u200d the potential \u200dof the credit card market and its commitment to expanding its offerings \u200cand market share.<\/p>\n<p>In\u200c conclusion, the acquisition of Discover Financial Services by Capital One is a significant development in the credit card industry. It\u200d will \u200denable Capital One\u2063 to enhance its product\u2062 portfolio \u2063and gain access to a wider customer base. The successful completion of this acquisition will\u200d establish Capital One\u2063 as \u200ba \u2062major player in the credit \u2064card market\u2063 and strengthen its position as a leading consumer bank.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital One Financial Corp&#8217;s logo is visible on its headquarters in McLean, Virginia. The consumer lending firm has cut around 1,100 technology roles this week to enhance its digital framework. OAN&#8217;s James Meyers reported this on February 19, 2024, at 2:05 PM<\/p>\n","protected":false},"author":2301,"featured_media":2180146,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2024\/02\/GettyImages-1457954154-e1708379561762.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2180145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2024\/02\/GettyImages-1457954154-e1708379561762.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2180145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2301"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2180145"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2180145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2180146"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2180145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2180145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2180145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}