Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Tom Keen with Paul Sweeney and Bloomberg's Alexis Christophers.
Speaker 3: All right, let's do it and start with a big
Speaker 3: winner here in the pre market, Taylor Morrison home The
Speaker 3: stock is up twenty two percent in the pre market.
Speaker 3: Berkshire Hathaway is going to buy Taylor Morrison. It's an
Speaker 3: all cash deal worth six point eight billion dollars. It's
Speaker 3: about seventy two to fifty a share, a twenty four
Speaker 3: percent premium to the homebuilder's last closing price Friday, So
Speaker 3: pretty nice. And it is also the first major purchase
Speaker 3: under Berkshire's new CEO, Greg Abel, of course, after legendary
Speaker 3: investor Warren Buffett retired last year. And it is seen
Speaker 3: as a vote of confidence in the housing market, which,
Speaker 3: let's face it, has been going through it lately. Right.
Speaker 3: They say it's a way for the company to unify
Speaker 3: Berkshire's home building operations. Berkshire has been sitting on a
Speaker 3: cash pile. Are you ready for it? Three hundred and
Speaker 3: ninety seven billion dollars at the end of less.
Speaker 1: Third of a trillion dollars.
Speaker 3: So they're like, yeah, let's make a purpose.
Speaker 1: Put it at a Christmas club account. That's a hell
Speaker 1: of a toaster.
Speaker 3: I'll tell you. But you know what, Berkshire Hathaway took
Speaker 3: a look at that stock. It's actually down five and
Speaker 3: a half percent year to date, right underperforming the rest
Speaker 3: of the market. That's interesting, But I was put in
Speaker 3: some of that cash pile to good use with Taylor
Speaker 3: Morrison MGM Resorts. This is a story that is unfolding
Speaker 3: here this morning. The stock is up thirteen percent right now.
Speaker 3: So The New York Times is reporting that Barry Diller,
Speaker 3: who owns People, Inc. Is preparing to make a bid
Speaker 3: for the remaining portion of MGM he doesn't already own.
Speaker 3: That's actually seventy four percent of MGM that he doesn't
Speaker 3: already own. It would be a bid that would value
Speaker 3: the company at eighteen billion dollars. They're looking at forty
Speaker 3: eight thirty a share in cash, and that would be
Speaker 3: a ten and a half percent premium over MGM's closing
Speaker 3: price on Friday and thirty percent higher. Then it's volume
Speaker 3: weighted average price over the last ninety days. That's what
Speaker 3: the Bloomberg terminal will give you a little data like that.
Speaker 1: How are they doing Paul versus like all the sports
Speaker 1: betting in that? Is it taken the thunder away?
Speaker 4: No? No, but this Jim is really a bet on Vegas.
Speaker 4: They do have exposure, some exposure to Asia, but it's
Speaker 4: really bet on Vegas. I got such just iconic brands
Speaker 4: from including my Belagio, which is my home. You were
Speaker 4: from home in Belagi. Yeah, I got this high roller
Speaker 4: suite there. They do you sure you was a high roller?
Speaker 4: Oh yeah, all right, you're high roll.
Speaker 3: It's a risky guy.
Speaker 4: I used to bring a conference there every year and
Speaker 4: I'd spend you know, fifty grand, one hundred grand risk
Speaker 4: free to them with dinners and conferences like you gotta
Speaker 4: commy for that, I mean if people like you. Yeah,
Speaker 4: so I finally worked out a deal there.
Speaker 1: So when you're a high roller, what's the view look
Speaker 1: like at the window.
Speaker 4: Well, you're not looking at the parking lot.
Speaker 2: Look at the pool.
Speaker 4: Off the U and the whole Thanks a little loud though,
Speaker 4: because it goes off.
Speaker 1: I had dinner once there with a wonderful law from
Speaker 1: Leon Jeworski's law firm from Houston and ages ago you.
Speaker 3: Got one more see Yeah, And I'm still waiting for
Speaker 3: my invite to the Blaggio Tom from Paul, so we'll
Speaker 3: see how that works. At IBM, continuing its recent hot
Speaker 3: streak up eleven percent this morning, Barkley is issuing its
Speaker 3: first rating on the stock, initiating coverage overweight, price target
Speaker 3: three hundred and fifty dollars. And guess what it's not about?
Speaker 3: Quantum computing. Remember I think it was last week the
Speaker 3: government said it was going to put this federal infusion
Speaker 3: of a billion dollars into IBM and companies like it
Speaker 3: to build these standalone quantum foundriies. But this analyst over
Speaker 3: at Barkley's is actually calling out IBM software, which is
Speaker 3: sort of what it's known for right, a different aspect
Speaker 3: of the business. It says software is behind nearly half
Speaker 3: of IBM's revenue and most of its profits. He says
Speaker 3: IBM's infrastructure software will create a highly loyal customer base.
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