Callaway Sells Struggling Topgolf To Los Angeles Private Equity

Core Insights - The Topgolf phenomenon may have been a consumer hype bubble, as Topgolf Callaway Brands has been attempting to divest the Topgolf unit for some time [1] Company Developments - Callaway has sold a 60% stake in its Topgolf and Toptracer division to Leonard Green & Partners, valuing the business at approximately $1.1 billion, generating about $770 million for Callaway [2] - Callaway originally acquired Topgolf in 2020 for around $2 billion, and after the sale closes in Q1 2026, the company will rebrand as Callaway Golf Company under the ticker "CALY" [2] Industry Trends - A report from Golf Digest indicated that Topgolf struggled to maintain a stable flow of returning customers, with cost being a significant factor [3] - Former Topgolf executives have launched a new venture called Blue Jeans, creating the "Golf Ranch" brand, which focuses on modernizing driving ranges to serve as practice facilities rather than the entertainment-focused Topgolf experience [5]