Berkshire Hathaway acquires national home builder in $8.5B deal 

Berkshire Hathaway Inc. has entered into an agreement to acquire Taylor Morrison Home Corporation, a move that will push HomeServices of America's parent company further into the new home construction space.

The deal announced May 31 is just the latest in a series of consolidation moves that have occurred within the real estate industry over the past year.

The details of the deal: Berkshire Hathaway will acquire the Scottsdale, Arizona-based national home builder for $72.50 per common share, with Taylor Morrison's total equity value estimated to be about $6.8 billion and the total enterprise value pegged at about $8.5 billion, according to a news release.

Talks about a potential acquisition began "a number of weeks ago," Taylor Morrison Chairman and CEO Sheryl Palmer told CNBC in a June 1 interview. The deal provides the home builder with a capital advantage that allows it "to focus on the long game," she said.

A 'once-in-a-lifetime opportunity': Palmer said the deal marks "a once-in-a-lifetime opportunity to propel Taylor Morrison into its next, and most exciting, chapter," and praised Berkshire's "unmatched capital strength and long-term investment philosophy."

Since launching its IPO 13 years ago, Taylor Morrison has "built a track record of strategic growth," Palmer said, and it will now be able to scale up "in ways that would not be possible as a standalone company."

"I could not be more excited about what this next chapter holds for our dedicated team members and partners who make this company extraordinary every day."

Delivering 'the dream of homeownership': The move brings "a best-in-class national homebuilder, led by an exceptional team and backed by a trusted reputation for customer experience" beneath the Berkshire Hathaway umbrella, CEO Greg Abel said.

The move reflects Berkshire's "long-standing commitment to housing," he added, pointing to the company's 2003 acquisition of manufactured housing company Clayton Homes as an example of a similar investment.

"Over time, we expect to unify our site-built homebuilding operations into a combined platform enabling us to deliver the dream of homeownership to more Americans," Abel said.

Taylor Morrison stock leaps: On June 1, just one day after the deal was announced, Taylor Morrison's stock price jumped over 22%. Palmer told CNBC that she's already received messages from shareholders indicating excitement about the deal.

"They see the absolute cultural fit," Palmer said. "The deal is really intended to provide the opportunity to build on what Taylor Morrison has accomplished over all these years."

What happens next: The all-cash deal is expected to close in the second half of 2026, pending customary closing and regulatory terms, as well as approval by Taylor Morrison stockholders.

Once the acquisition is complete, Taylor Morrison's current management team — including Palmer — will remain in place, the companies said.