Are Discover’s Days Numbered?
On Friday, Morgan Stanley spun-off Discover Financial Services to focus on its higher-growth, core businesses. Already, there is speculation that Discover will be bought out in the near future:
“We believe there is a reasonable likelihood of a sale of Discover over the next two years,” wrote Eric W. Wasserstrom, a UBS research analyst, in a report initiating coverage on the company with a “neutral” rating.
Potential suitors include Citigroup, General Electric and Wal-Mart.
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Companies get bought and sold, but I doubt that the DISCOVER card’s buyer will kill the DISCOVER credit card brand.
You’re probably right about that. The brand is too valuable for that to happen. My fear would be if an acquisition would dampen the innovation that Discover has been come to be known for.