Berkshire’s first major acquisition under CEO Greg Abel signals long-term confidence in housing despite weak near-term data.
Berkshire Hathaway agreed to acquire homebuilder Taylor Morrison for $72.50 per share in a $6.8 billion cash deal, valuing the company at $8.5 billion including debt. The purchase marks a 24% premium to Taylor Morrison’s May 29 closing price and Berkshire’s first major strategic acquisition under new CEO Greg Abel.
Taylor Morrison reported a 26% year-over-year decline in home closings to 2,268 units, with adjusted gross margin compressing 400 basis points to 20.6%. Housing starts have fluctuated between 1.273 million and 1.507 million over the past seven months, with April’s print at 1.465 million, down 3% sequentially.
The deal, expected to close in the second half of 2026, adds a top-tier production builder to Berkshire’s existing housing-related assets, including Clayton Homes and Berkshire Hathaway HomeServices. Berkshire holds roughly $400 billion in cash, reinforcing its long-term conviction in the sector.