A purchase of Discover's payment processing network by Apple or Microsoft is eminently feasible, based on Sakhrani's valuation estimate for the network. Apple reported having $40.6 billion in cash and short-term marketable securities as of Sept. 28, while Microsoft reported $80.7 billion in cash, cash equivalents and short-term investments as of Sept. 30.
Discover's shares returned 37% year-to-date through Monday's close. The shares were down 1% in morning trading, to $51.47.
Interested in more on Discover Financial Services? See TheStreet Ratings' report card for this stock.-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn