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  "documentTitle": "Intuit Inc. (INTU)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2024-09-20 00:00:00",
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  "notes": "Includes a direct quote from a former Intuit director to support the thesis of a 'frenemy' relationship.",
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      "text": "Credit Karma’s Difficult History With Capital One Does Not Bode Well For Post-Deal Platform Spend",
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      "text": "Potential issues from the proposed merger: Reduced combined company marketing spend on Credit Karma; Greater negotiating leverage on pricing; Acquiring company (Capital One) has a “complicated” (or poor) historical relationship with Credit Karma; Intuit’s continued moves into payments further threatens the relationship",
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      "text": "Lead generation for credit cards is the dominant source of Credit Karma revenue. Capital One was a major customer (we believe 20-25% of revenue) until they decided to leave the Credit Karma platform (see below for why). Credit Karma plugged that revenue hole by adding Discover as a major customer. Even though each company has somewhat distinct target customers, we believe the merger of two strategic customers bodes poorly for aggregate marketing spend and thus for Credit Karma.",
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      "text": "…Credit Karma and Cap One historically had a frenemy relationship…Credit Karma really grew in a way on the back of Cap One's spending…there were concerns around the Credit Karma release of the checking and savings product…the Intuit acquisition was a final stroke, where it was, okay, you're becoming more of a competitor in our minds.",
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      "text": "Source: New York Times, Tegus, Spruce Point Research",
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      "text": "The Potential Merger Of Capital One And Discover Could Be Terrible For Credit Karma",
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