Berkshire Hathaway has agreed to acquire homebuilder Taylor Morrison in an all-cash deal valued at about $6.8 billion, the first major acquisition under Chief Executive Greg Abel and a signal of how he intends to deploy the conglomerate’s enormous cash pile in the post-Warren Buffett era.
Under the agreement, announced May 31, Berkshire will pay $72.50 per share for the Scottsdale, Arizona-based company, a premium of roughly 24% over Taylor Morrison’s closing price before the news. Including debt, the transaction carries an enterprise value of about $8.5 billion. The deal is expected to close in the second half of 2026, pending approval from shareholders and regulators.
The acquisition is the clearest statement yet of Abel’s strategy since he succeeded Buffett at the helm last year. For decades, Berkshire’s swelling cash reserves and the scarcity of large deals had become a defining theme. The company sat on a record $397 billion in cash at the end of the first quarter, and the Taylor Morrison purchase shows Abel is willing to act at scale when he sees value, even as critics had questioned whether a new chief could match Buffett’s dealmaking instincts.
Strategically, the move slots neatly into Berkshire’s existing portfolio. The conglomerate already owns Clayton Homes, one of the largest builders of manufactured and factory-built housing in the United States, and holds a stake in homebuilder Lennar. Abel framed the deal as a chance to unify Berkshire’s site-built operations into a single platform, saying the goal is to make homeownership accessible to more Americans. Combining Taylor Morrison with Clayton would create one of the country’s largest homebuilders by volume.
Taylor Morrison ranks among the top homebuilders in the U.S., operating more than 350 communities across roughly a dozen states and running a financial-services arm offering mortgages, title and insurance products. The company posted net income of about $782 million on revenue of $8.12 billion in 2025. Chief Executive Sheryl Palmer is expected to continue leading the business after the transaction closes.
The bet arrives at a complicated moment for U.S. housing. Affordability remains strained after years of elevated prices, while the Federal Reserve’s interest-rate cuts have begun to ease borrowing costs and revive demand. Buying a major builder gives Berkshire direct exposure to a sector it has long touched through insurance, real-estate brokerage and manufactured housing, but never at this scale of new-home construction.
For Buffett, who handed over operational control while remaining chairman, the deal offered a moment to publicly back his successor’s judgment. The 95-year-old investor praised Abel’s handling of the transaction, an endorsement that carries weight as shareholders gauge the conglomerate’s direction.
If completed, the acquisition would mark a defining early chapter for Abel, demonstrating both a willingness to spend Berkshire’s hoard and a vision for assembling a broader housing platform at a time when the supply of affordable homes remains a pressing national concern.
