Callaway Unwinds Sub-Par Acquisition of Topgolf

Core Viewpoint - Callaway has agreed to sell a 60% stake in Topgolf to Leonard Green for $1.1 billion, which is approximately half of the amount Callaway paid for the brand in 2020 [1] Group 1: Company Performance - Callaway had previously acquired a 14% stake in Topgolf in 2006 and completed a $2 billion takeover during the pandemic's golf boom, rebranding itself as Topgolf Callaway [2] - The company's market capitalization has significantly decreased from a projected $15 billion in 2022 to just $2 billion today [2] - Callaway's shares have dropped over 70% from their peak in 2021, although there has been some recovery this year in anticipation of the Topgolf spinoff [4] Group 2: Topgolf's Growth Challenges - Despite being the fastest-growing unit, Topgolf's growth has stalled due to increased competition and a broader consumer pullback, with revenue for the segment falling 1.4% in the first nine months of 2025 compared to the previous year [5] - Same-venue sales are predicted to decline to mid-single digits for the year, following a 9% decrease in 2024 [5] - Inflation and high interest rates have created significant challenges for Topgolf, increasing capital expenditures as the company expanded its locations from around 60 in 2020 to approximately 100 today [5]