Callaway and Topgolf are splitting up into two separate companies.
They merged back in October 2020, but now they’ve decided it’s better to operate independently after a “strategic review.”
Chip Brewer, the president and CEO of Topgolf Callaway Brands, announced that they plan to make Topgolf its own company.
Brewer emphasized how Topgolf is changing golf and expects it to bring big financial gains over time. He mentioned that Topgolf has a different business model compared to Callaway, which led the Board to decide on this separation for better success and shareholder value.
Stock Performance and Future Plans:
Since January, the stock price of Topgolf Callaway Brands has dropped by 24%, and venue sales have also decreased. Brewer acknowledged these issues but remains optimistic about Topgolf’s future potential.
Fans might feel mixed about this news.
Despite being disappointed with recent stock performance, Brewer believes in significant growth for Topgolf. They are reviewing strategies to improve same-venue sales growth or even considering spinning off the brand entirely.
Although selling the brand isn’t off the table, Brewer insists that spinning off is more likely to create substantial shareholder value. If a better option arises, they will explore it.
In March, rumors swirled about Saudi PIF buying Topgolf Callaway Brands. Phil Mickelson even supported this idea saying it would be great if it happened. However, those talks were denied by the company.
Brewer clarified that only Topgolf would be spun-off or sold while other brands like Odyssey and Ogio remain part of Callaway. Over the years, Callaway has become a top name in golf equipment and built a successful apparel business too.
What do you think about this split?
