Back in 2006, Callaway Golf saw potential in a business that merged driving ranges and a sports bar atmosphere, Topgolf. Similar to a bowling alley, but with a golf focus, Callaway invested in Topgolf early on. They controlled 14% of the business before announcing a full-merger in October of 2020. It was later finalized in March of 2021.
By September of 2024, Callaway announced plans to separate from Topgolf. Now, less than 5 years after merging initially, they are following through with the separation. Agreeing to offload a majority stake for over $1 billion dollars.
While Callaway will maintain a 40% stake in the company, the goal is for the two to return to separate and distinct entities. With Callaway taking on a new name of Callaway Golf Company, leaving behind the Topgolf Callaway Brands name. The Callaway Golf Company will likely return to other focuses, such as equipment and apparel, while still recognizing and maintaining value in Topgolf venues.
Topgolf Callaway Brands
At their peak in June of 2021, the combined Topgolf and Callaway stock hit $37.29 per share. Since then, it has dropped drastically. In September of 2024, Callaway CEO Chip Brewer announced plans to eventually separate the two. By November 13th, the day before the Wall Street Journal announced that private-equity firm Leonard Green and Partners were in talks to purchase the company, the stock was down 71% at $10.58 per share.
In a statement detailing the news, Brewer said,
“As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties. 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.”
While limited details are known regarding the reason behind the separation, MarketWatch commented on the often encouraging first-year sales of a new Topgolf location, followed by the figures then dropping due to return costs for families and other factors. However, they also reported a recent improvement in business, potentially keeping Callaway from selling out entirely and instead keeping a 40% share.
The sale of Topgolf includes Toptracer, the ball-flight technology used at all 100 locations worldwide. The deal is expected to close in early 2026, with the name change occurring at the same time.
Callaway’s Other Opportunities
Offloading Topgolf provides more opportunities for Callaway to return to previous strengths and endeavors. The company was No. 1 in equipment sales in 2024, for the third year in a row. And the No. 2 brand of ball, behind Titleist. Callaway has repeatedly offered high-quality and in-demand products for all golfers. For many golf fans, this could be good news. Callaway reportedly plans to return funds and focus toward improving and advancing equipment and apparel while paying down debt.
Earlier this year, Callaway made another change. In April of 2025, the company announced the sale of German outdoor apparel and camping brand Jack Wolfskin to ANTA. The Chinese multinational sportswear company purchased the brand for a reported $290 million.
Also under the Callaway business portfolio are Odyssey Putters, Travis Mathew Apparel, and Ogio Accessories. All prominent and well-known brans throughout the golf world.
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