Berkshire Hathaway Agrees to Buy Taylor Morrison for $8.5 Billion

Berkshire Hathaway agreed to take homebuilder Taylor Morrison Home Corporation private in an all-cash transaction valuing the company at roughly $8.5 billion, the companies announced on May 31, according to a joint press release reviewed by PR Newswire.

The offer of $72.50 per share implies an equity value of about $6.8 billion and a total enterprise value of approximately $8.5 billion, which includes assumed debt. The price is a 24% premium to Taylor Morrison's May 29 closing price of $58.50. Shares of TMHC jumped 22% in premarket trading the following Monday, per a report by CNBC, effectively pricing in the deal on day one and leaving little room for arbitrage profit.

For Berkshire, the transaction extends a housing platform that already spans manufactured-home giant Clayton Homes, a collection of building-products businesses, and Berkshire Hathaway HomeServices, one of the largest residential real estate brokerage franchise networks in the country. According to CNBC's reporting on the deal, it also marks one of the first major strategic acquisitions under CEO Greg Abel, who took over from Warren Buffett at the start of 2026. Berkshire's last comparable move came in October, when it struck a $9.7 billion cash agreement to purchase OxyChem from Occidental Petroleum.

At the target scale, the Taylor Morrison deal is not a stretch for Berkshire's balance sheet. As CNBC noted, the conglomerate is sitting on a cash hoard nearing $400 billion, making the $8.5 billion enterprise price relatively modest by the company's own historical standard.

Taylor Morrison itself is a sizable operation. According to HousingWire's coverage of the announcement, the Scottsdale, Arizona-based builder runs more than 350 communities across 21 markets in 12 states, serving entry-level, move-up, and resort lifestyle buyers under the Taylor Morrison and Esplanade brands and developing rental communities under the Yardly brand. The company also offers mortgage, title, escrow, and homeowners insurance services. It delivered 12,997 homes last year and had 341 active selling communities at the time of the announcement, per Multifamily Dive.

Chairman and CEO Sheryl Palmer will remain in place after closing, a structure that mirrors Berkshire's standard playbook of retaining incumbent management in acquired subsidiaries. The deal requires Taylor Morrison shareholder approval and standard regulatory clearances, with closing expected in the second half of 2026.

On the advisory side, Goldman Sachs and Moelis served as financial advisors to Taylor Morrison, with Simpson Thacher and Bartlett as legal counsel, according to the joint press release. Berkshire's advisory arrangements were not disclosed in the same document.

The deal adds a publicly traded homebuilder to Berkshire's housing portfolio at a moment when new-home supply remains constrained and the builder's existing lot pipeline carries value independent of current mortgage-rate conditions. Whether Abel paid a fair price depends almost entirely on assumptions about housing starts and input costs over a multi-year horizon - projections Berkshire has historically declined to provide.

Sources cited:
- Taylor Morrison Investor Relations / PR Newswire (joint press release, May 31, 2026) (https://investors.taylormorrison.com/news-and-events/news/news-details/2026/Berkshire-Hathaway-to-Acquire-Taylor-Morrison-Home-Corporation-for-8-5-Billion/default.aspx)
- CNBC (https://www.cnbc.com/2026/06/01/berkshire-hathaway-taylor-morrison-home-acquisition-housing-market.html)
- HousingWire (https://www.housingwire.com/articles/berkshire-hathaway-to-acquire-taylor-morrison-home-corporation-8-5-billion/)
- Multifamily Dive (https://www.multifamilydive.com/news/berkshire-Hathaway-merger-and-acquisition-homebuilder/821651/)