Credit Card Industry Research

Discover Financial: A Creditable Investment - Barron's

Rachael,

Thanks for the great post. We agree with Barron's general thesis about Discover and actually commented on their prospects as a takeover target at the beginning of July in a research post on our site called "Do Discover's Skills Make it an Acquisition Target?"

It is not just their methodical growth, however, as Discover has other operational competencies and assets that make them attractive. Beyond their methodical growth, they have a customer base they understand, good solid customer service and a payments network (currently subscale) which a larger buyer could likely do something with and value to provide some leverage when negotiating with MasterCard and Visa.

The post for those interested is at creditcardindustryrese.../.

Sincerely,
Dominic
Research Director
Credit Card Industry Research
creditcardindustryrese...