Wall Street appeared mixed this morning on news that Topgolf Callaway Brands (MODG) has signed a “definitive agreement’’ to sell a 60 percent stake in its Topgolf and Toptracer businesses to private equity funds managed by Leonard Green & Partners.
The transaction values Topgolf at approximately $1.1 billion. In connection with this sale and its related financing transactions, Topgolf Callaway Brands expects to receive approximately $770 million in net proceeds (subject to purchase price adjustments).
Topgolf Callaway Brands’ stock this morning initially increased to $11.09 per share from yesterday’s close of $10.88, but by mid-morning had dropped to $10.26 per share.
The agreement comes slightly more than one year after Topgolf Callaway Brands announced its intentions to sell or spinoff its Topgolf division, which Callaway Golf acquired on March 8, 2021 for $2 billion in stock. The acquisition, which created Topgolf Callaway Brands, seemed like a good idea at the time, as it put Callaway Golf into the golf entertainment business and diversified its portfolio from just golf equipment and lifestyle brands.
But Wall Street never fully bought into the merger. Callaway Golf’s stock price on March 8, 2021 closed at $29.52 per share Topgolf Callaway Brands, in Q4 2024, recorded a $1.45 billion non-cash charge related to the underperforming Topgolf business and the falling share prices.
MODG’s current 52-week high is $11.60 (Nov. 14, 2025) and its 52-week low is $5.42 (April 8, 2025).
Topgolf Callaway Brands CEO Chip Brewer this morning told Wall Street analysts that he expected to complete the deal with Leonard Green in the first quarter of 2026. When complete, Topgolf Callaway Brands will change its name back to Callaway Golf Company and update its ticker symbol to CALY. The company’s common stock will continue to trade on the New York Stock Exchange.
“As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties,” Brewer said. “After a robust process and a thorough evaluation of a range of alternatives, we believe this sale is the best outcome for our shareholders, as well as our employees and other stakeholders. This transaction is highly attractive in that it provides the company with both significant proceeds and substantial upside in the continued growth of Topgolf.”