Who Owns Discover Bank and How It Was Acquired

Discover Bank was founded in 1985 by Dean Witter Reynolds and Sears, Roebuck and Co. as a joint venture called Sears Financial Network.

The bank was later acquired by Morgan Stanley in 1997, and then by Discover Financial Services in 2007.

Discover Financial Services is a separate publicly traded company that owns and operates Discover Bank, as well as other financial services companies.

The bank's ownership structure is complex, but at its core, Discover Bank is owned by its parent company, Discover Financial Services.

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Capital One Financial Corporation acquired Discover Financial Services in an all-stock transaction valued at $35.3 billion.

The acquisition was approved by the Federal Reserve and the Office of the Comptroller of the Currency on April 18, 2025.

Under the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a premium of 26.6% based on Discover's closing price of $110.49 on February 16, 2024.

Capital One shareholders will own approximately 60% of the combined company, and Discover shareholders will own approximately 40%.

The acquisition will give Capital One access to a credit card network of 305 million cardholders, adding to its base of more than 100 million customers.

Capital One plans to maintain the Discover brand on the cards and network, assuming regulators sign off and the deal is consummated.

The Discover, PULSE, and Diners Club International networks will join Capital One's suite of offerings.

Here's a breakdown of the ownership structure after the acquisition:

Capital One is acquiring Discover Financial Services in an all-stock transaction valued at $35.3 billion.

The acquisition brings together two companies with long-standing track records of delivering attractive and resilient financial results, award-winning customer experiences, breakthrough innovation, and financial inclusion.

Under the terms of the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a premium of 26.6% based on Discover’s closing price of $110.49 on February 16, 2024.

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The combined company will have a market value of approximately $52 billion, with Capital One shareholders owning roughly 60% and Discover shareholders owning the rest.

The acquisition was approved by the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency on April 18, 2025, and by the Delaware State Bank Commissioner on December 18, 2024.

Here are the key details of the acquisition:

The acquisition is expected to create a consumer lending colossus, with Capital One gaining access to a credit card network of 305 million cardholders.