To expand its housing business, Berkshire Hathaway agreed on Sunday to purchase Taylor Morrison Home Corp for $6.8 billion in cash.
The deal is Berkshire’s first multibillion-dollar acquisition since Greg Abel took over as CEO at the beginning of 2026, replacing chairman Warren Buffett.
Additionally, it permits Abel to spend a portion of Berkshire’s $380.2 billion cash hoard as of March.
Additionally, Abel controls the majority of Berkshire’s common stock portfolio, which is led by Apple, and includes a growing interest in Alphabet, the parent company of Google.
For Taylor Morrison, Berkshire agreed to pay $72.50 per share, a 24% premium over the Scottsdale, Arizona-based company’s closing stock price of $58.50 on Friday.
According to the corporations, the takeover has an enterprise value of $8.5 billion.
In 2025, Taylor Morrison reported $782.5 million in net profits on $8.12 billion in revenue.
Omaha, Nebraska-based Berkshire has a long history of investing in and owning real estate.
In 2003, it purchased the manufactured house builder Clayton Homes.
One of the biggest residential real estate brokerages in the United States and building supply companies, including Acme Brick, Benjamin Moore paint, and Johns Manville insulation, are among the other Berkshire subsidiaries. Lennar and NVR at the end of March were among the stocks in Berkshire’s portfolio.
“COMBINED PLATFORM” FOR HOMEBUILDING: BERKSHIRE ENVISIONS
Taylor Morrison is a “best-in-class national homebuilder,” according to a statement from Abel, who also stated that Berkshire plans to “unify our site-built homebuilding operations into a combined platform” to facilitate home purchases by Americans.
Under the Taylor Morrison, Esplanade, and Yardly brands, Taylor Morrison offers entry-level and “resort lifestyle” housing in twelve U.S. states.
Among the top 100 home builders listed by Builder magazine, it comes in at number six. Additionally, some Clayton units and Taylor Morrison offer mortgage financing.
The CEO of Taylor Morrison, Sheryl Palmer, described Berkshire’s long-term emphasis as “uniquely well-suited to the multi-year investment cycle of homebuilding” and stated that the acquisition “will allow us to scale the Taylor Morrison platform in ways that would not be possible as a standalone company.”
Palmer will continue as CEO, and the deal is anticipated to be completed in the second half of 2026, subject to shareholder and regulatory clearances.
Berkshire paid $9.5 billion in cash in January for Occidental Petroleum. It was announced in October of last year.
According to the company, Taylor Morrison was advised on the deal by the law firms Simpson Thacher & Bartlett and Mayer Brown, as well as Goldman Sachs and Moelis.
