Berkshire Hathaway’s first post- Warren Buffett acquisition: Buys homebuilder Taylor Morrison for $8.5 Billion
Berkshire Hathaway agreed to acquire Taylor Morrison Home Corporation in an $8.5 billion all-cash transaction; It was the first takeover announced since Warren Buffett left as chief executive, as the conglomerate began deploying some of its record cash reserves into the US housing market.
The deal, announced in a joint statement Sunday, will see Berkshire pay $72.50 per share for the Scottsdale, Arizona-based home builder; That’s a nearly 24 percent premium over Taylor Morrison’s closing price of $58.50 on Friday. The equity value of the transaction reached $6.8 billion and the total enterprise value reached $8.5 billion.
$8.5 Billion Berkshire Hathaway and Taylor Morrison Deal: What You Need to Know
This acquisition expands Berkshire’s presence in residential construction well beyond its longstanding manufactured housing base, historically centered on Clayton Homes, which Berkshire acquired in 2003. Taylor Morrison, which builds site-built homes and operates in 21 markets in 12 U.S. states, opens an entirely new dimension in Berkshire’s residential operations.
Berkshire CEO Greg Abel, who takes over leadership of the group from Buffett on Dec. 31, 2025, said the deal reflects a clear desire to deepen the company’s footprint in residential construction, with scope to consolidate operations over time.
“We are excited to have Taylor Morrison join Berkshire’s portfolio,” Abel said, adding that the company could help expand access to homeownership.
Taylor Morrison Home: US Builder in Central Berkshire Makes Largest Acquisition in Years
Founded as a publicly traded company in 2013, Taylor Morrison has built a significant business around residential construction and lifestyle community development in 12 U.S. states. Beyond home building, the company offers a range of ancillary financial services, including mortgage, title, escrow and homeowners insurance products.
According to LSEG data, Taylor Morrison’s market value was approximately $5.47 billion before the announcement. The agreed purchase price of $72.50 per share matches the company’s 52-week high, which was last reached in early September 2025.
Taylor Morrison CEO Sheryl Palmer said the transaction would provide the builder with the long-term financial support a capital-intensive industry demands.
“Berkshire Hathaway’s long-term orientation is well-suited to homebuilding’s multi-year investment cycle, and this combination will allow us to scale the Taylor Morrison platform in ways that would not be possible as a standalone company,” Palmer said.
How Berkshire Hathaway’s Record $397 Billion Cash Reserves Shape This Deal
Berkshire Hathaway’s cash holdings rose from $373 billion at the end of December 2025 to a record $397 billion as of March 31. The conglomerate has reduced its equity portfolio for 14 consecutive quarters. Against this backdrop, the $8.5 billion acquisition of Taylor Morrison represents approximately 2 percent of its current cash reserves.
Taylor Morrison Management Team to Continue Business Leadership After Berkshire Acquisition
Upon completion of the transaction, Taylor Morrison will become a private company and its shares will cease to be traded on the New York Stock Exchange. Palmer and the existing senior management team will remain in their roles, operating the business under its established name and structure.
Goldman Sachs and Moelis served as financial advisors to Taylor Morrison on the deal.
Palmer emphasized that the scale of what the company could achieve under Berkshire ownership would be categorically different.
Closing Timeline of Berkshire Hathaway and Taylor Morrison Acquisition
The two companies expect the transaction to close in the second half of 2026, subject to customary regulatory approvals and shareholder approval.
Stock Performance Ahead of Berkshire Hathaway and Taylor Morrison Deal Announcement
Berkshire’s Class B shares fell 2.45 percent to $474.48 last week, falling below both their 50- and 200-day moving averages. The stock fell to a nine-month low of $464.01 in April. Berkshire shares have faced sustained selling pressure since early May 2025, when Buffett announced his intention to step down as CEO by the end of the year.
Taylor Morrison shares closed last week up 0.9 percent at $58.50, recovering from the 52-week low reached the previous week. The stock still remained below both the 50-day and 200-day moving averages heading into the weekend announcement.
