top of page

Is Topgolf Callaway Selling Its Golf Equipment Business? Rumors and Reactions

Topgolf Callaway (MODG) - ★★ - Ranked 69th in Q1 2024 Mid & Small Cap Rankings

Shares of Topgolf Callaway Brands Corp. (MODG) surged as much as 14% on Wednesday, seeing the biggest intraday gain since May 2022. The sudden rally was sparked by a report that the company is exploring a sale of its Callaway Golf equipment manufacturing arm.

According to South Korea's Chosun Daily, Callaway Golf could fetch a valuation close to $3 billion in a potential deal. The report, citing investment banking sources, stated that Topgolf Callaway's major shareholders plan to spin off the TopGolf driving range chain business while selling just the Callaway equipment brand.

This reported strategic move comes as the golf industry is facing headwinds after the pandemic-driven boom in popularity.

The Chosun Daily report says Topgolf Callaway's major shareholders have already selected a lead manager and are proceeding to market their stakes and management rights in Callaway Golf.

Callaway Golf merged with TopGolf Entertainment in a $2 billion deal that closed in March 2021, acquiring the remaining stake it didn't own in the tech-driven driving range business.

If substantiated, a spinoff and sale of the equipment business could potentially unlock value for Topgolf Callaway shareholders.

The market reaction suggests investors are enthusiastic about this reported strategic shift.

Topgolf Callaway has a ★★ star ranking in our Q1 2024 Mid/Small Cap Rankings with a price target of $15.

Subscribe for More Insights

Don't miss out on opportunities like this one. Our subscribers receive all price targets, rankings, regular updates, options ideas, and comprehensive analysis to help them navigate the options market effectively. With our plans, you'll gain access to a wealth of knowledge and strategies that can make a real difference in your trading journey.

The information provided in this report is for general informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The opinions expressed in the report are our own and are subject to change without notice. We may have a position in the securities mentioned in the report, and we may buy or sell such securities without notice. Any investment decisions made based on the information in this report are solely the responsibility of the recipient. We do not accept any liability for any direct, indirect, or consequential loss arising from any use of this report or its contents.


bottom of page