00:00Let's do it and start with a big winner here in the pre-market, Taylor Morrison Home.
00:05The stock is up 22% in the pre-market.
00:08Berkshire Hathaway is going to buy Taylor Morrison.
00:11It's an all-cash deal worth $6.8 billion.
00:15It's about $72.50 a share, a 24% premium to the homebuilder's last closing price Friday, so pretty nice.
00:22And it is also the first major purchase under Berkshire's new CEO, Greg Abel.
00:26Of course, after legendary investor Warren Buffett retired last year.
00:30And it is seen as a vote of confidence in the housing market, which, let's face it, has been going
00:34through it lately, right?
00:35They say it's a way for the company to unify Berkshire's homebuilding operations.
00:40Berkshire has been sitting on a cash pile.
00:42Are you ready for it?
00:44$397 billion at the end of last quarter.
00:47So a third of a trillion dollars.
00:49So they're like, yeah, let's make a purchase.
00:50Do you put that in a Christmas Club account?
00:52That's a hell of a toaster.
00:54I'll tell you.
00:54Yeah, but you know what, Berkshire Hathaway, I took a look at that stock.
00:57It's actually down 5.5% year-to-date, right, underperforming the rest of the market.
01:02That's interesting.
01:03But they're putting some of that cash pile to good use with Taylor Morrison.
01:07MGM Resorts.
01:08This is a story that is unfolding here this morning.
01:11The stock is up 13% right now.
01:13So the New York Times is reporting that Barry Diller, who owns People, Inc., is preparing
01:19to make a bid for the remaining portion of MGM he doesn't already own.
01:24That's actually 74% of MGM that he doesn't already own.
01:27It would be a bid that would value the company at $18 billion.
01:31They're looking at $48.30 a share in cash.
01:34And that would be a 10.5% premium over MGM's closing price on Friday.
01:39And 30% higher than its volume-weighted average price over the last 90 days.
01:44That's what the Bloomberg Terminal will give you, a little data like that.
01:47How are they doing, Paul, versus, like, all the sports betting and that?
01:51Is it taking the thunder away from them?
01:53No, no, but this MGM is really a bet on Vegas.
01:56They do have some exposure to Asia, but it's really a bet on Vegas.
02:00I think it's just iconic brands, including my Bellagio, which is my home.
02:04You're Bellagio.
02:05Yeah, I got the high-roller suite there.
02:07They know me.
02:08Do you?
02:09Sure.
02:09I don't see you as a high-roller.
02:11Oh, yeah.
02:12All right.
02:12You're a high-roller.
02:13It's a risky guy.
02:14I used to bring a conference there every year, and I'd spend, you know, $50,000, $100,000
02:20risk-free to them with dinners and conferences and something.
02:23You've got to call me for that.
02:24Oh, they love people like you, Paul.
02:25So, yeah, so I finally worked out a deal there.
02:27When you're a high-roller, what's the view look like out the window?
02:31Well, you're not looking at the parking lot.
02:32You're looking at the pool.
02:33You're looking at the pool.
02:34Or the strip.
02:35Do they sell the fountains that go off to the music and the whole thing?
02:38That's a little loud, though, because it goes off all night.
02:39I had dinner once there with a wonderful law firm, Leon Jaworski's law firm from Houston
02:45ages ago.
02:46Yep.
02:46You got one more?
02:47Yeah, I'm still waiting for my invite to the Bellagio, Tom, from Paul, so we'll see
02:50how that works out.
02:51IBM continuing its recent hot streak up 11% this morning.
02:56Barclays issuing its first rating on the stock, initiating coverage, overweight, price target,
03:01$350.
03:02And guess what?
03:02It's not about quantum computing.
03:04Remember?
03:04I think it was last week.
03:06The government said it was going to put this federal infusion of a billion dollars into
03:10IBM and companies like it to build these standalone quantum foundries.
03:14But this analyst over at Barclays is actually calling out IBM software, which is sort of
03:20what it's known for, right?
03:21A different aspect of the business.
03:22It says software is behind nearly half of IBM's revenue and most of its profits.
03:28He says IBM's infrastructure software will create a highly loyal customer base.
03:33It says we're going to be JER-LEN, right.
03:33You're going to be very close.
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