Discount

Discount is if an acquiring firm pays less for another firm than the firm's stock price times its # of shares of stock outstanding (book value or market value), then that # less the actual purchase price is called a discount.

Definition

According to the Strategic Management by David and David (15th edition),

Discount. If an acquiring firm pays less for another firm than the firm's stock price times its # of shares of stock outstanding (book value or market value), then that # less the actual purchase price is called a discount.