Author Topic: Who might buy LC?  (Read 3401 times)

WES

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Who might buy LC?
« on: November 14, 2014, 01:07:33 PM »
https://www.pehub.com/2014/11/lendingclub-with-plans-to-go-public-also-seeks-a-buyer/

Peter's blog today guesses that Facebook may be a plausible buyer given their history with LC. Who else would fit and why:
  • WalMart: expand their foray into consumer banking services

  • Amazon: internet expertise and lots of cash
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Theta

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Re: Who might buy LC?
« Reply #1 on: November 14, 2014, 04:49:58 PM »
Wells Fargo, Facebook or Google come to mind. 


Fred

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Re: Who might buy LC?
« Reply #2 on: November 14, 2014, 08:32:10 PM »
I do wish credit-card issuer banks (Bank of America, JP Morgan, Capital One, ...) won't buy LC.  They will just kill it in favor of their credit-card business.

GS

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Re: Who might buy LC?
« Reply #3 on: November 14, 2014, 08:35:32 PM »
What about something like eTrade ... I think it would do wonders for both companies, assuming there is not not regulatory reason why they can't merge.

jpildis

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Re: Who might buy LC?
« Reply #4 on: November 15, 2014, 09:53:26 AM »
I think on of the bis issuers of CCs (cap one, BofA, Citi) would make the most sense.  They understand consumer credit, have the ability to securitize debt and could justify as both a defensive and offensive play to their boards.


avid investor

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Re: Who might buy LC?
« Reply #5 on: November 15, 2014, 11:54:39 AM »
I do wish credit-card issuer banks (Bank of America, JP Morgan, Capital One, ...) won't buy LC.  They will just kill it in favor of their credit-card business.
I don't think so, Fred.  There aren't that many players in the P2P market.  If you try to kill off an entire market by buying and terminating the leading players, you just create a vacuum in which someone else will see an opportunity.  I think it makes more sense to buy and maintain.  Lots of companies buy competitors and keep their products as so-called "competitive products", but they get the profit regardless of which brand you buy.  It's kind of like going to a new car dealership and finding out that the owner owns a Honda, Kia, and a Chevy dealership as well. 

Fred

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Re: Who might buy LC?
« Reply #6 on: November 15, 2014, 01:14:43 PM »
I do wish credit-card issuer banks (Bank of America, JP Morgan, Capital One, ...) won't buy LC.  They will just kill it in favor of their credit-card business.

If you try to kill off an entire market by buying and terminating the leading players, you just create a vacuum in which someone else will see an opportunity.

If you are Bank of America or JP Morgan, this vacuum is a desirable outcome, extending the profit period of your CC business.

I think it makes more sense to buy and maintain.  Lots of companies buy competitors and keep their products as so-called "competitive products", but they get the profit regardless of which brand you buy.  It's kind of like going to a new car dealership and finding out that the owner owns a Honda, Kia, and a Chevy dealership as well.

I was thinking more about Nokia being acquired by Microsoft.  Both of Nokia's name and product are essentially gone now.

rawraw

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Re: Who might buy LC?
« Reply #7 on: November 15, 2014, 06:00:00 PM »
For every person getting out of CC debt, I'm sure there is another getting into debt.  It's not as if these loans didn't exist before LC.