“Not aware of such discussions,” Callaway Golf stated after viewing a startling report from a Korean news website.
Following a report from a Korean news site claiming the brand is for sale, Callaway Golf responded promptly.
A South Korean strategic investor is in the running to buy Topgolf Callaway Brands, according to a report in The Chosun Daily.
Currently, Callaway Golf is the sponsor of several of the biggest athletes in the world, including Jon Rahm of LIV Golf and Xander Schauffele and Sam Burns of the PGA Tour.
The report claims:
“Calaway Golf’s major shareholders, BlackRock Advisors LLC (12.09%), Providence Equity Partners LLC (11.48%), and Thomas Dundon (10.11%), the founder of Dallas-based private investment firm Dundon Capital Partners, have chosen a lead manager and are in the process of selling their stakes and management rights, according to the investment banking (IB) industry.”
It continues by saying:
According to reports, “the major shareholders will sell only Callaway Golf and spin off Topgolf, a subsidiary of Topgolf Callaway Brands Corp.”
Jonathan Wall, the equipment editor at GOLF, claims that Callaway responded right away, stating, “We confirm we are not aware of any such discussions.”
According to a Korean news site Callaway Golf is being sold after being split off from Topgolf.
“We confirm that we are not aware of any such discussions,” Callaway says in a statement.
Then Wall tweeted:
“A Korean news website reports that Callaway Golf is up for sale following its separation from Topgolf.”
In a statement, Callaway states, “We confirm that we are not aware of any such discussions.”
From here, it could get interesting.
Wall then posted Callaway’s reply in full:
“Although we have a long-standing policy of not commenting on market rumors and speculation, we hereby clarify that we are not aware of any discussions regarding a potential sale of the Company or its golf equipment business, especially in light of the unusual market activity of today and a recent media report originating in Korea. We have no intention of commenting further on this subject, and should events change, we assume no responsibility to make any additional announcements or disclosures.”
Callaway Golf purchased sports entertainment company Topgolf in 2020.
After merging, the business became known as Topgolf Callaway Brands, and its current valuation is almost $3 billion.
Sales of over $4 billion were reported by Topgolf Callaway Brands Corp. in 2023, a 7.2% increase over 2022.
Last year, Callaway’s net income was $95,5 million.
At present, the company is valued at $2.5 billion and is traded on the New York Stock Exchange (NYSE).
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