Berkshire Hathaway Buys Taylor Morrison for $6.8 Billion in Abel's First Major Deal

Berkshire Hathaway agreed on May 31 to acquire Taylor Morrison Home Corporation in an all-cash transaction valuing the homebuilder's equity at $6.8 billion and its total enterprise at $8.5 billion, according to a definitive agreement reviewed in an 8-K filing by Taylor Morrison with the SEC. The price works out to $72.50 per common share.

The deal is the first of this scale under Greg Abel, who became Berkshire's chief executive at the start of 2026 after Warren Buffett stepped back. According to CNBC's reporting on the announcement, Taylor Morrison shares jumped 22% on the news; Berkshire's Class B shares slipped less than 1%.

The offer represents a 24% premium to Taylor Morrison's closing price of $58.50 on May 29, the last trading day before the announcement. Berkshire entered the agreement while sitting on a cash reserve that reached $397 billion at the end of the first quarter, its highest level on record, according to Bloomberg's coverage of the transaction. At $6.8 billion of equity value, the deal barely dents that stockpile.

Abel's stated integration plan drew immediate attention. In the joint press release, he said Berkshire intends to unify its site-built homebuilding operations into a combined platform over time, a posture that Bloomberg described as a notable departure from Berkshire's long-standing practice of leaving acquired businesses to run independently. Christopher Davis of Hudson Value Partners, quoted by Bloomberg, called that shift "a notable departure" but said investors would welcome it.

Berkshire already owns Clayton Homes, the country's largest manufactured-housing builder, and a collection of building-products businesses. The Taylor Morrison deal adds a national site-built brand active across multiple U.S. markets. Taylor Morrison CEO Sheryl Palmer, in the SEC-filed press release, pointed to homebuilding's multi-year investment cycles as a structural fit with Berkshire's long-horizon capital. "Berkshire Hathaway's long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding," she said.

The housing backdrop is mixed. Mortgage rates were at their highest level since August at the time of the deal, and new-home sales were down as of April, according to RISMedia's reporting on the announcement. Homebuilder confidence showed some improvement in May, but affordability pressure has persisted. Berkshire's willingness to pay a premium into that environment signals a bet on demand recovery rather than current-period economics.

Buffett, 95, praised Abel's execution publicly. "Greg did that faster than I could have done it, smoother than I could have done it," he told CNBC's Becky Quick.

Goldman Sachs and Moelis are advising Berkshire on the deal. Simpson Thacher is serving as Berkshire's legal counsel. Taylor Morrison is represented by Mayer Brown, according to the joint statement filed with the SEC. The transaction is expected to close in the second half of 2026, pending Taylor Morrison shareholder approval and standard regulatory clearance.

Sources cited:
- Taylor Morrison Home Corp Form 8-K (SEC filing, Exhibit 99.1) (https://www.sec.gov/Archives/edgar/data/0001562476/000119312526249694/d111152dex991.htm)
- Bloomberg via Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/berkshire-hathaway-buy-taylor-morrison-000512741.html)
- CNBC (https://www.cnbc.com/2026/06/01/berkshire-hathaway-taylor-morrison-home-acquisition-housing-market.html)
- RISMedia (https://www.rismedia.com/2026/06/01/berkshire-hathaway-taylor-morrison-home-corp-6-8-billion/)