What happened?
Capital One said Monday it would buy rival credit card issuer Discover Financial Services for $35.3 billion in stock. The deal would create the biggest credit card lender in the country, The Washington Post said, citing Bloomberg Intelligence.
Who said what?
"Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies,” Capital One founder and CEO Richard Fairbank said.
The commentary
"A space that is already dominated by a relatively small number of megaplayers is about to get a little smaller," said LendingTree analyst Matt Schulz. For consumers, "it's far from clear that bigger means better," Felix Salmon said at Axios. It is "very difficult to imagine" federal regulators allowing the deal to go through, "given the requirement that mergers benefit the public as well as insiders," said Jesse Van Tol, head of the National Community Reinvestment Coalition.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What next?
The deal, if cleared by regulators, is expected to close in late 2024 or early 2025.
-
‘Tariffs are making daily life less affordable now’Instant Opinion Opinion, comment and editorials of the day
-
Out of office: microretirement is trending in the workplaceThe explainer Long vacations are the new way to beat burnout
-
Will California tax its billionaires?Talking Points Proposed one-time levy would shore up education, Medicaid
-
US mints final penny after 232-year runSpeed Read Production of the one-cent coin has ended
-
How could worsening consumer sentiment affect the economy?Today’s Big Question Sentiment dropped this month to a near-record low
-
Musk wins $1 trillion Tesla pay packageSpeed Read The package would expand his stake in the company to 25%
-
Starbucks workers are planning their ‘biggest strike’ everThe Explainer The union said 92% of its members voted to strike
-
Warner Bros. explores sale amid Paramount bidsSpeed Read The media giant, home to HBO and DC Studios, has received interest from multiple buying parties
-
Gold tops $4K per ounce, signaling financial uneaseSpeed Read Investors are worried about President Donald Trump’s trade war
-
Electronic Arts to go private in record $55B dealspeed read The video game giant is behind ‘The Sims’ and ‘Madden NFL’
-
Trump proposes ending quarterly earnings reportsSpeed Read The SEC would have to approve any changes
