Berkshire Hathaway has announced plans to buy Taylor Morrison for $6.8 billion in cash — the first major acquisition since Greg Abel took over from Warren Buffett. The deal is expected to close in the second half of 2026 with CEO Sheryl Palmer remaining at her post. Abel called Taylor Morrison a “best-in-class national homebuilder” in an official statement said Berkshire expects to “unify our site-built homebuilding operations into a ⁠combined platform” to make ‌it easier for Americans to buy homes. 

“Berkshire is acquiring a best-in-class national homebuilder, led by an exceptional team and backed by a trusted reputation for customer experience. We are excited to welcome Taylor Morrison into Berkshire’s portfolio, reflecting our long-standing commitment to housing, exemplified by Clayton Homes and our other building products businesses,” said Greg Abel.

Details of the deal

According to a statement, Berkshire has agreed to pay $72.50 ​per ​share for the acquisition of Taylor Morrison. This is a 24% premium over the Arizona-based company’s closing stock price of $58.50 on Friday. The companies said the takeover has an enterprise value of $8.5 billion. The deal represents a total equity value of approximately $6.8 billion for Taylor Morrison and a total enterprise value of about $8.5 billion. 

A joint statement from the two companies added that Taylor Morrison Home Corporation would become a private company after the transaction was completed — with its common stock no longer listed and traded on the NYSE. Goldman Sachs & Co. LLC and Moelis & Company LLC are serving as financial advisors, Simpson Thacher & Bartlett LLP is serving as legal advisor, and Mayer Brown LLP is serving as financial services regulatory counsel to Taylor Morrison. 

Record cash reserves and recent investments

The deal is relatively modest by Berkshire standards, but allows CEO Greg Abel to utilise part of its vast cash hoard. The company ended March with a record-setting reserve of $380.2 billion — reflecting its years-long inability to find a major acquisition. Berkshire had also paid $9.5 billion in cash for Occidental Petroleum’s chemicals business January after announcing the deal last October.

Prior disclosures suggest Abel also inherited most of the Berkshire equity portfolio — including the portion belonging to Buffett protege Todd Combs, who quit in December to join JPMorgan Chase. Regulatory filings reveal that the company bought $15.94 billion and sold $24.09 billion of stocks in the ​January-to-March period.

Recent changes include a new $2.65 billion investment in ​Delta Air Lines and a small stake in Macy’s that was disclosed in mid-May. Berkshire has also more than tripled its share stake in Google parent Alphabet — which at $16.6 billion has become ​one of its largest common stock investments. Its holdings in the New York Times has also more than doubled to 9.4% stake. It also sold many of smaller ‌stock holdings including Amazon.com, UnitedHealth Group, and the credit card networks Visa and Mastercard.