What’s In Your Wallet? How To Profit From Capital One’s $35.3 Billion Acquisition Of Discover


  • Capital One announced a deal to acquire Discover Financial for $35.3 billion in an all-stock deal.
  • Today’s market reaction has been positive for DFS stock and neutral for COF stock.
  • Merger arbitrage, anyone? The deal presents an 11.1% premium for investors buying DFS stock that will be realized upon the deal closing, likely in late 2024 or early 2025.


Yesterday after market close, Capital One (NYSE:COF) announced a monster deal to acquire Discover Financial (NYSE:DFS) for roughly $35.3 billion. This represents 1.0192 COF shares for each DFS share (worth $139.56 per DFS share at current prices). In its press release, Capital

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DFS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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