Berkshire Hathaway Inc. (NYSE:BRK.B) has completed its $6.8 billion acquisition of Taylor Morrison Home Corporation (NYSE:TMHC), paying $72.50 per share in cash. The deal values the homebuilder at 10.8 times trailing earnings, a discount compared to its peers.
The New York Stock Exchange halted trading in Taylor Morrison shares after the market closed on Friday, July 24, 2026. The last trade was recorded at $72.45, leaving a merger spread of just five cents, or 0.07%. Delisting is scheduled for August 3.
Deal Metrics and Valuation
According to market data, Taylor Morrison's trailing earnings per share stood at $6.71, resulting in the 10.8x earnings multiple. In comparison, the average price-to-earnings ratio for three major publicly traded homebuilders—D.R. Horton Inc. (NYSE:DHI), Lennar Corp. (NYSE:LEN), and PulteGroup Inc. (NYSE:PHM)—was 13.7x on Monday morning. This means Berkshire acquired Taylor Morrison at a roughly 21% discount to its peers.
The offer also represented a 13.3% premium over Taylor Morrison's book value of $64 per share as of March 31, 2026. Prior to the announcement, the stock had been trading 8.6% below book value.
Strategic Rationale
Berkshire CEO Greg Abel stated that Taylor Morrison "will lead our vision for a unified site-built homebuilding operation." Sheryl Palmer will continue as chief executive. The combined operations of Taylor Morrison and Clayton Properties Group delivered nearly 23,000 site-built homes in 2025, spanning 21 states, 52 markets, and over 700 communities. This scale places the entity fourth in the national homebuilding ranking.
The acquisition comes amid a challenging housing market. June new-home sales rose 1.6% to an annual rate of 628,000 but remained 5.6% lower year-over-year. Inventory stood at 9.3 months' supply, and the median price fell 2.7% to $398,300. Builder confidence dropped to 34 in July, with 63% offering sales incentives and 37% cutting prices.
Taylor Morrison's Recent Performance
Taylor Morrison had felt the pressure. First-quarter net orders fell 13.6%, and home-closing gross margin declined to 20% from 24% as discounts increased. Net income plunged by more than half to $98.6 million.
UBS analyst John Lovallo described the deal as "a strong vote of confidence" in the industry's long-term prospects. Berkshire now assumes the operational risks, including ongoing incentives, tighter margins, and the challenge of integrating 15 builders. Ex-TMHC investors are no longer exposed to those risks.
The arbitrage opportunity has effectively closed with the spread nearly eliminated. Public shareholders have been cashed out, while future gains tied to the housing cycle will accrue to Berkshire.
