Dean Witter Discover & Co.

Case Analysis

In early 1993 Sears was in the process of spinning off its Dean Witter, Discover subsidiary. This consisted of a subsidiary securities brokerage, which, in 1985, the company introduced in 1981 and also the Discover Card, an all-purpose credit card was purchased. The central issue was the price per share of the IPO. As Dean Witter, Discover was a unique company, consisting of a linked credit card with a retail-oriented brokerage of securities, the valuation of the company was not necessarily … Read more »

In early 1993 Sears was in the process of spinning off its Dean Witter, Discover subsidiary. This consisted of a subsidiary securities brokerage, which, in 1985, the company introduced in 1981 and also the Discover Card, an all-purpose credit card was purchased. The central issue was the price per share of the IPO. As Dean Witter, Discover was a unique company, consisting of a linked credit card with a retail-oriented brokerage of securities, the valuation of the company was not necessarily a simple question.
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from
Dwight B. Crane,
James W. Whalen
Source: Harvard Business School
21 pages.
Publication Date: Jan 25, 1994. Prod #: 294046-PDF-ENG
Dean Witter, Discover & Co. HBR case solution