Deal Premiums
Buyers usually pay more than the target’s market price. That extra is the deal premium. Here is how premiums are measured, what they looked like in real 2025–26 deals and what happens to the target’s stock.
Measuring the premium
The premium is the offer price compared with the target’s “unaffected” price, the price before news or rumors of the deal. Using the unaffected price matters because stocks often jump on reports before a deal is announced.
| Deal | Unaffected price | Offer | Premium |
|---|---|---|---|
| Electronic Arts take-private | $168.32 (Sept. 25, 2025) | $210 cash | About 25% |
| Paramount Skydance for Warner Bros. Discovery | $12.54 (Sept. 10, 2025) | $31 cash | About 147% |
Company-announced figures.
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