Topgolf Callaway Brands Jumps 5% After Report Says Talks Are On To Sell Topgolf Unit

• The report stated that private equity firm Leonard Green had previously acquired a minority stake in Topgolf.
• Last year, Topgolf Callaway Brands announced its intention to pursue the separation of its business into two independent companies.
• The company had then said that it expects to effect the separation through a spin-off of the Topgolf business.

Topgolf Callaway Brands (MODG) stock rose nearly 5% after the company reportedly entered into discussions with private-equity firm Leonard Green to sell its Topgolf unit.

According to a report by The Wall Street Journal, citing people familiar with the matter, the deal would value Topgolf at about $1 billion. The report added that Leonard Green had previously acquired a minor stake in Topgolf.

Topgolf Callaway Brands Separation

This report comes more than a year after Topgolf Callaway Brands announced its intention to separate its business into two independent companies: Callaway, a golf equipment company with an activewear business, and Topgolf, a golf entertainment business.

The company had then said that it expects to effect the separation through a spin-off of the Topgolf business. While the firm had stated that it expects a spin-off of Topgolf into a stand-alone public company to be the most likely separation path, it also noted that it would continue to evaluate other options for separation.

How Did Retail Users React?

Retail sentiment on Topgolf Callaway Brands dipped to ‘bullish’ from ‘extremely bullish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

Shares of the company have gained nearly 45% this year and increased by 33% over the last 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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