Callaway Share Split to Create Two Separate Companies

Callaway Golf Company is planning to split its shares in a move that will create two separate companies. This move is expected to increase the company's value and provide shareholders with more flexibility.

The golf equipment manufacturer has been growing rapidly in recent years, driven by the popularity of golf and the success of its products. As a result, the company's stock price has increased significantly.

The share split is intended to make the company's stock more attractive to investors and to increase its trading volume. This will make it easier for investors to buy and sell shares of the company.

By creating two separate companies, Callaway will be able to focus on its core business while also exploring new opportunities.

Callaway and Topgolf's business relationship has come to an end, with the two companies parting ways to focus on their own growth strategies.

The merger between Topgolf and Callaway was initially promising, but it ultimately didn't work out.

Topgolf and Callaway operate with distinct business models and capital needs, which led to the decision to split.

Callaway will benefit from a streamlined business structure and dedicated resources, allowing it to focus on golf equipment, apparel, and lifestyle brands.

Topgolf, on the other hand, can now fully focus on expanding its entertainment venues and technology platform, catering to a broader audience beyond traditional golfers.

The split is expected to be finalized in the second half of 2025, with Topgolf being spun off with at least 80.1% ownership distributed to existing Topgolf Callaway Brands shareholders.

Topgolf will retain a significant cash balance and no financial debt, while Callaway will assume all existing debt.

Topgolf Callaway Brands is spinning off Topgolf as its own publicly traded company.

After a three-year merger, Topgolf and Callaway have decided to part ways, with Topgolf being spun off with at least 80.1% ownership distributed to existing Topgolf Callaway Brands shareholders.

Topgolf will retain a significant cash balance and no financial debt, while Callaway will assume all existing debt.

Topgolf will continue to be led by Artie Starrs, and Callaway will be led by Chip Brewer.

Both companies will be commercial partners moving forward, with Callaway remaining the exclusive equipment supplier for the driving range business.

The spin-off is expected to be finalized in the second half of 2025, marking a new chapter for Topgolf and Callaway as independent companies.

Callaway will retain golf equipment and active lifestyle businesses, as well as the Toptracer ball-tracking segment, which generated $2.5 billion in revenue over the last 12 months.

The Topgolf segment, which includes more than 100 venues, generated $1.8 billion over the same period.

Goldman Sachs and Centerview Partners are financial advisers on the transaction, while Latham & Watkins will serve as legal counsel.