Callaway Golf issues immediate statement after hearing shock update

Callaway Golf "not aware of such discussions" after seeing shock report from Korean news site.

20 Mar 2024

Callaway Golf issues immediate statement after hearing shock update

Callaway Golf has issued a quick response after seeing a report from a Korean news site claim the brand is up for sale.

According to a report in The Chosun Daily, a South Korean strategic investor is in the running to acquire Topgolf Callaway Brands.

Callaway Golf currently sponsors a number of the world's biggest stars, highlighted by LIV Golf's Jon Rahm and PGA Tour duo Xander Schauffele and Sam Burns.

The report claims:

"According to the investment banking (IB) industry, Callaway Golf’s major shareholders - BlackRock Advisors LLC (12.09%), Providence Equity Partners LLC (11.48%), and Thomas Dundon (10.11%), a founder of Dundon Capital Partners, a Dallas-based private investment firm - have selected a lead manager and are in the process of selling their stakes and management rights."

It then adds:

"The major shareholders will reportedly spin off Topgolf, a subsidiary of Topgolf Callaway Brands Corp., and sell only Callaway Golf."

But according to GOLF's equipment editor Jonathan Wall, Callaway has immediately hit back by saying "we confirm we are not aware of any such discussions".

Korean news site reports Callaway Golf is being spun off from Topgolf and sold.
Callaway issues statement saying “we confirm that we are not aware of any such discussions.”
This could get interesting… pic.twitter.com/0qBfMWKsZP
— Jonathan Wall (@jonathanrwall) March 20, 2024

Wall tweeted:

"Korean news site reports Callaway Golf is being spun off from Topgolf and sold.

"Callaway issues statement saying “we confirm that we are not aware of any such discussions.”

"This could get interesting…"

Wall then posted Callaway's reply in full:

"While it is our long-standing practice not to respond to market rumors and speculation, in light of today's unusual market activity, coupled with a recent media report originating in Korea regarding discussions of a potential sale of the Company or its golf equipment business, we confirm that we are not aware of any such discussions. We do not intend to comment further on this topic, and we assume no obligation to make any further announcement or disclosure should circumstances change."

Sports entertaintment company Topgolf was acquired by Callaway Golf in 2020.

The merged company then adopted the name Topgolf Callaway Brands, which is now estimated to be worth just shy of $3 billion.