NEW YORK, July 27, 2026, 10:06 EDT — Shares were halted in U.S. regular session after Berkshire wrapped up its $6.8 billion takeover of Taylor Morrison at a multiple of 10.8 times earnings.
Taylor Morrison shares were halted following the market close on Friday. Qualifying shareholders will get $72.50 in cash for each share.
The last quoted price of $72.45 resulted in a merger spread of five cents, or 0.07%.
The bid values the company at 10.8 times trailing earnings, roughly 21% lower than three major peers.
Shares of Taylor Morrison Home Corporation NYSE:TMHC did not trade on Monday. Berkshire Hathaway Inc. NYSE:BRK.B finalized its $6.8 billion all-cash acquisition on Friday.
Eligible public shareholders receive the right to $72.50 in cash per share. The NYSE halted trading following the close on Friday.
The last trade on Friday came in at $72.45. The merger spread stood at five cents, or 0.07% on a gross basis. Delisting becomes official as of August 3.
The more significant figure is 10.8. According to market data, Taylor Morrison’s trailing EPS stands at $6.71. This means the cash bid values the company at 10.8 times its earnings.
The average price-to-earnings ratio for three major publicly traded builders stood at 13.7 on Monday morning. Berkshire acquired at a multiple roughly 21% beneath that figure. Even accounting for a 24% premium over the unaffected closing price, the discount held.
Delayed quotes were accessed at 10:06 EDT. Taylor Morrison’s multiple is based on the offer price and the trailing EPS from market feeds. Variations in business mix, debt levels, and regional exposure exist within the group.
The headline premium compared to book value appears narrower. As of March 31, Taylor Morrison listed $64 per share. The bid was 13.3% higher than this amount. Prior to the announcement, the stock traded 8.6% beneath book value.
Scale represented the key advantage. In 2025, Taylor Morrison and Clayton Properties Group together delivered almost 23,000 site-built homes. Their unified operations cover 21 states, 52 markets, and over 700 communities. According to the companies, this places them fourth in the national ranking.
Berkshire CEO Greg Abel stated that Taylor Morrison “will lead our vision for a unified site-built homebuilding operation.” Sheryl Palmer continues as chief executive. PR Newswire
The move goes against the trend. Initial June new-home sales climbed by 1.6% to an annual rate of 628,000. However, sales remained 5.6% lower compared to the same period last year. The uptick for the month was not statistically meaningful.
Inventory stood at 9.3 months’ worth of sales. The median price was down 2.7% from a year earlier, at $398,300. Price sensitivity continues to shape demand.
Builders experienced comparable strain in July. The confidence index dropped to 34, with 63% offering sales incentives. Price reductions were implemented by 37% of builders.
Taylor Morrison experienced the impact earlier. Net orders for the first quarter dropped 13.6%. The home-closing gross margin decreased to 20%, down from 24%, amid rising discounts. Net income declined by over half to $98.6 million.
UBS analyst John Lovallo described the acquisition as “a strong vote of confidence” for the industry’s long-term prospects. With this deal, Berkshire gains exposure to that cycle. Reuters
Berkshire now assumes the risks. Ongoing incentives, tighter margins and the challenge of integrating 15 builders may weigh on returns. Ex-TMHC investors are not exposed to that operational risk.
The arbitrage closed with the spread nearly eliminated. Public shareholders are paid in cash, while upcoming gains tied to the housing cycle benefit Berkshire.
Is TMHC still trading after Berkshire Hathaway finalizes its acquisition?
Berkshire Hathaway completed its takeover of Taylor Morrison on July 24, 2026. Taylor Morrison shares have stopped trading, with all equity now under Berkshire Hathaway’s control. The NYSE suspended trading at Friday’s close, leaving no further pricing data. Delisting will be made official on August 3, after which SEC deregistration will occur. Only the merger payout applies to former shareholders.
How much cash will previous TMHC shareholders receive for each share?
Eligible common shares were converted to $72.50 in cash per share, with no interest paid. Due to withholding taxes, some investors may receive less in their accounts. The transaction valued Taylor Morrison's equity at about $6.8 billion, while the reported enterprise value at close was around $8.5 billion. Following the transaction, previous shareholders lost their direct entitlement to Taylor Morrison’s future profits.
How large was the takeover premium, and what was TMHC’s final closing price?
On May 29, TMHC's closing price was $14 per share below the offer, representing a 23.9% premium, which the companies rounded up to approximately 24%. As of July 24, TMHC last closed at $72.45. The residual five-cent difference made up about 0.07% of the cash value. Once trading ended and shares were converted, the gap ceased to matter.
When will the $72.50 payment appear in brokerage accounts?
According to the merger agreement, the paying agent is required to issue materials within two business days. This timeframe extends through Tuesday, July 28, according to standard calculations. Payment to book-entry holders is made once the required transfer message reaches the agent. Certificate holders may need to provide documents before payments are processed. Brokerage posting times may vary depending on the custodian and the type of account.
What is the impact on current TMHC exchange-traded options?
OCC modified the deliverable for each standard 100-share contract to a cash amount of $7,250. Settlement is determined by subtracting the contract's full strike price from this cash deliverable. Contracts with expiration dates after August 21, 2026, will now expire on that specific day, while those with earlier expirations remain unchanged. The minimum exercise price is established at $0.01. American-style contracts already in effect will retain their right to be exercised through their designated expiration dates.
Has Taylor Morrison been added to the S&P MidCap 400?
Taylor Morrison was removed from the S&P MidCap 400 prior to the market opening on July 24, with Krystal Biotech added to the index in its place. Consequently, TMHC is excluded from future MidCap 400 return calculations. S&P identified the change as part of a Consumer Discretionary sector adjustment. The index update coincided with the completion of Berkshire’s acquisition.
Will Taylor Morrison report its second-quarter earnings as scheduled this week?
The company has yet to announce a separate Q2 earnings statement. Its investor-relations site shows no scheduled events, maintaining Q1 2026 as the latest update. Taylor Morrison plans to file a Form 15 to suspend regular reporting. Therefore, the likelihood of a TMHC-related earnings event in the upcoming week is low. There remains a chance of optional disclosure, but both its timing and details are uncertain.
What are the latest operating metrics that Taylor Morrison has made public?
First quarter revenue fell 26.8% from a year ago to $1.387 billion. Home closings dropped 26% to 2,268 units, while the average closing price was down 4% to $578,000. The adjusted home-closing gross margin narrowed to 20.6%, compared with 24.8% in the same period last year. Adjusted diluted earnings per share stood at $1.12, compared to $2.19 in the previous year. Net orders were 2,914, a decrease of about 14% year over year. The backlog comprised 3,465 homes valued at $2.3 billion, an increase of 23% from the previous quarter. Quarter-end liquidity was $1.6 billion, including $653 million in cash.
Are shareholders required to pay tax on the $72.50 cash payment?
For investors in the U.S., converting usually triggers a taxable capital gain or loss. The gain or loss is determined by subtracting the adjusted basis for each set of shares from the amount of cash received. Each acquisition lot must be calculated separately for federal tax compliance. Shares held longer than one year are generally treated as long-term capital assets. The rules can differ for retirement accounts, investors outside the U.S., and individual states. Tax results are based on individual circumstances, so consulting with a professional tax advisor is recommended.
Can investors access Taylor Morrison through public markets?
Investors must now buy shares of Berkshire Hathaway’s BRK.A or BRK.B for exposure. Sheryl Palmer continues to oversee operations and drive integration with Clayton Properties Group. The combined group completed nearly 23,000 site-built homes in 2025, operating in 21 states, 52 markets, and more than 700 communities. The companies state this makes it the fourth-largest homebuilder in the United States. Taylor Morrison remains under Berkshire’s umbrella.
Marcin Frąckiewicz is the founder and CEO of TS2 Space, a satellite communications company working with customers worldwide. His experience spans satellite communications, telecommunications and technology ventures. He graduated from the Warsaw School of Economics (SGH) and writes about space technology, artificial intelligence, stocks and the technology companies and industries he follows. Follow Marcin Frąckiewicz on Google News, Facebook or LinkedIn.
