Topgolf Callaway Brands (MODG) CEO Chip Brewer said all the right things on a Nov. 18 conference call that followed the company’s announcement it had agreed to sell a 60 percent stake in its Topgolf unit to private equity firm Leonard Green Partners for $1.1 billion. But so far, Wall Street doesn’t appear impressed.
Topgolf Callaway Brands shares fell more than five percent on Nov. 18 and today fell another nine percent to close at $9.36. The stock today dipped as low as 9.24 per share.
Why the skepticism? Consider that when the sale is complete (expected Q1 of 2026) and the company reverts back to Callaway Golf (CALY), it basically will be in the same situation it was prior to acquiring in March 2021. That is, looking for ways to increase earnings and shareholder value in what essentially is a “zero sum” golf equipment industry.
Brewer to analysts: “This transaction allows us to sharpen our focus on our leading golf equipment business and active lifestyle platform. Post transaction, our remaining brand portfolio will consist of Callaway, Odyssey, TravisMathew and OGIO, which together generated over $2 billion in revenue over the last 12 months through Q3 2025.’’
All true.You can look it up, as they say. But here’s the rub for Wall Street:
Topgolf Callaway Brands has tried tried a few deals, but none, including Topgolf and Jack Wolfskin, really have worked out as expected. So, the big question is, how will Brewer grow Callaway Golf and create shareholder value in 2026 and beyond?