A South Korean newspaper is reporting today that golf’s biggest company, Topgolf Callaway, may be up for sale.
That’ll put a jolt in your Wednesday, won’t it?
The Chosun Daily is reporting that Topgolf Callaway’s three largest investors are joining together to sell their ownership stakes and management rights. Those major shareholders include BlackRock Advisors LLC, Providence Equity Partners LLC and Thomas Dundon. Together they own over 33 percent of Topgolf Callaway shares.
The paper also reports that the plan is to spin off the Topgolf business and sell the Callaway golf and apparel business for approximately $3 billion.
A South Korean investment company is said to be the leading candidate to land the Callaway business.
One important note: no other major news outlet has confirmed the Chosun Daily story.
Topgolf Callaway share prices soared in premarket trading as a result of the report. Prices reached a 2024 high of $16.25. The current price as of this writing is up over 11.5 percent over yesterday.
MyGolfSpy has reached out to Topgolf Callaway for comment. This article will be updated throughout the day as new information becomes available.
WOW, Just WOW
Topgolf Callaway finished 2023 with total sales topping $4.28 billion, with an annual profit of $95 million. All three of the company’s business units finished the year with at least $1 billion in sales, led by the Topgolf division at $1.76 billion. The company opened 11 new Topgolf venues in 2023, with plans for eight more to be opened this year.
The Callaway brand finished 2023 as the leading golf equipment brand, with No. 1 market share positions in total clubs, drivers, fairway woods, hybrids and irons.
If this story is true and the Callaway brand is sold to a South Korean entity, that would make three of the top four companies in golf owned by South Korean interests. Controlling interest in the publicly traded Acushnet, the parent company of Titleist, was acquired by FILA in 2011. Seoul-based private equity firm Centroid Investment Partners bought TaylorMade in 2021.
PING remains privately owned by the Solheim family.
COBRA is owned by PUMA which, like Acushnet and Topgolf Callaway, is publicly traded. Its largest shareholder is the Pinault Francois family.
What This Means
It’s way to early to tell. But if it does come to fruition is represents a seismic change in the golf landscape. It should not be considered a death knell for Callaway, however, or even a negative. South Korean ownership has not hurt the business for either TaylorMade or Acushnet nor has it impacted the overall quality or performance of each company’s equipment.
Any potential sale is simply a byproduct of being a publicly traded company in a global market.
MyGolfSpy will update this article throughout the day as more information becomes available.
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