Berkshire Hathaway (BRK.B) Stock Acquires Homebuilder Taylor Morrison for $6.8 Billion

TLDR

• Berkshire Hathaway agreed to buy homebuilder Taylor Morrison Home Corp. for $6.8 billion in an all-cash deal
• The offer of $72.50 per share is a 24% premium to Taylor Morrison’s Friday closing price of $58.50
• This is CEO Greg Abel’s first major acquisition since taking over from Warren Buffett in January
• Taylor Morrison stock jumped as much as 23% in premarket trading; Berkshire’s Class B shares were little changed
• The deal is expected to close in the second half of 2026

Berkshire Hathaway has agreed to buy homebuilder Taylor Morrison Home Corp. in an all-cash deal valued at $6.8 billion. The offer comes in at $72.50 per share — a 24% premium to Taylor Morrison’s closing price of $58.50 on Friday.

Taylor Morrison stock (TMHC) jumped as much as 23% to $71.75 in premarket trading Monday morning. Berkshire’s Class B shares (BRK.B) were little changed.

This is the first major acquisition under CEO Greg Abel, who took over from Warren Buffett in January. Abel said the deal “reinforces our long-standing commitment to U.S. housing.”

It’s also the largest Berkshire deal since the company bought Occidental Petroleum’s petrochemical business for $9.7 billion in January.

Berkshire ended Q1 2026 with a record $381.1 billion in cash and Treasury bills. Investors had been watching closely to see how Abel would deploy that capital.

Berkshire Hathaway Inc., BRK-B

Berkshire’s Class B shares have fallen 5.6% this year, while the S&P 500 has gained 10.7% over the same period. Some investors had been hoping a deal would help lift the stock.

Abel’s comments about eventually unifying Berkshire’s homebuilding operations drew attention. That would be a shift from Berkshire’s long-standing practice of letting acquisitions run independently.

Christopher Davis of Hudson Value Partners called it “a notable departure” from Berkshire’s trademark strategy, but said “investors will welcome that evolution.”

What Berkshire Gets

Taylor Morrison is one of the largest homebuilders in the US. The Scottsdale, Arizona-based company has more than 350 communities across 12 states.

It also offers financial services including home loans, title, escrow, and insurance — adding a services layer on top of the core building business.

Berkshire already has exposure to housing through Clayton Homes and a stake in Lennar Corp. (LEN). The Taylor Morrison deal expands that footprint considerably.

Deal Background

The acquisition comes at a difficult time for the homebuilding sector. New residential construction fell 2.8% in April. Single-family home starts dropped 9%, the steepest decline since August.

Mortgage rates have also climbed back to their highest level since August, adding pressure on buyers and builders alike.

The deal is expected to close in the second half of 2026. Goldman Sachs and Moelis & Co. are advising Taylor Morrison on the transaction.

Berkshire also disclosed a new $2.6 billion position in Delta Air Lines during Q1 2026.

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