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Topgolf Sales Tumble as Owner Callaway Considers Spin-Off

Callaway's Strategic Review of Topgolf

Callaway Golf, the parent company of Topgolf, has announced a strategic review of its Topgolf business. This move comes as the golf entertainment company faces declining sales amid economic uncertainty.

Topgolf's Revenue Decline

According to Topgolf Callaway Brands' 2022 earnings report, Topgolf's revenue declined by 3% in the past year, accounting for $1.5 billion of the company's total revenue of $3.995 billion.

This decline is attributed to decreased corporate event bookings at Topgolf venues, according to Topgolf Callaway President and CEO Chip Brewer.

Callaway's Acquisition of Topgolf

Callaway acquired Topgolf for $2 billion in 2021, valuing the company at $2 billion. CEO Chip Brewer remains convinced of Topgolf's significant potential for the future.

Callaway's Strategic Options

Callaway's strategic review of Topgolf includes evaluating various options, including a potential spin-off or sale of the business.

This move signals Callaway's willingness to consider divesting itself from its Topgolf division to focus on its core golf club business.

Conclusion

The strategic review of Topgolf by Callaway reflects the ongoing challenges faced by the golf entertainment industry. As Topgolf's sales continue to decline, Callaway is exploring options to maximize shareholder value and navigate the uncertain economic landscape.