Callaway Golf Up for Sale Despite $4.3 Billion Revenue, as Per Reports

According to the South Korean newspaper, Chosun Daily, Callaway Golf may be up for sale! The news surely sounds hard to believe, but if the rumors are to be believed, they are true. It is reported that the three top investors namely, BlackRock Advisors LLC, Providence Equity Partners LLC, and Thomas Dundon are looking to sell their ownership and management rights. They together hold up approximately 33% of the shares of Callaway Golf.

As per the alleged reports, the first brand to be sold will be Topgolf, followed by Callaway Golf and apparel as well, for around $3 billion. The report also indicates that an unnamed South Korean investment firm could be a possible option to hand over the entire Callaway empire. The news went viral on social media when a Twitter page, MYGOLFSPY, posted about it.

The Callaway brand exited 2023 as one of the leading golf equipment brands, with revenue of $4.3 billion and a net profit of $95 million. The company’s CEO was elated to close the year as the top golf brand in the USA and said, “We finished the year with the number 1 U.S. market share of total clubs, drivers, fairway woods, hybrids, and irons.” The company’s revenue had grown by nearly 7.2% in 2023. As a result of the sale speculation, Callaway’s shares spiked by 12.94% in premarket action on Wednesday to a 2024 high of $16.25.

LIV golfer Phil Mickelson was also once a member of the Callaway family, but weeks before the Saudi League’s 2024 season started, he announced his exit. If the rumors turn out to be true, the future of players such as Xander Schauffele and Sam Burns with respect to endorsements might get uncertain.

What will happen if the Callaway Golf rumor is true? 

If there is any truth in this rumor, that would lead to the top three golf brands owned by South Korean businesses. In 2011, Titleist was acquired by KRX-listed FILA Holdings Corp. Then, 10 years later, in 2021, Seoul-based private equity firm Centroid Investment Partners LC bought TaylorMade.

Read More: Tiger Woods Rumors: ‘Sunday Red’ to Return Through TaylorMade, Ends Concerns Over Nike Tragedy

South Korean ownership has had no negative impact on either Titleist or TaylorMade in terms of the overall quality of their equipment. So, if there is even an ounce of truth in the report, fans and golfers can remain unfazed about the changed in quality of the equipment.

Callaway already merged with Topgolf in March 2021 and rebranded itself as Topgolf Callaway. Shortly after this deal was made, Topgolf Callaway stock was at nearly $37 per share. Certainly, this news has not been confirmed outside of the Chosun Daily report, so it remains to be seen if it is the truth or just another rumor!

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