Topgolf entertainment venues are instantly recognizable, as is the Callaway brand on the golf equipment used at those locations — but the company overseeing those brands plans to split.
The combined Topgolf Callaway Brands is No. 527 in the Top 1000. The Top 1000 Database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales. There, it falls under the Specialty category. Digital Commerce 360 has projected that Topgolf Callaway’s total web sales would reach $146.00 million in 2024.
Topgolf Callaway Brands web sales by year
Now, after almost four years as a combined entity with Callaway, both brands would become independent again.
Why Topgolf Callaway Brands intends to split
“Topgolf is transforming the game of golf and is expected to deliver substantial financial returns over time,” said Chip Brewer, the president and CEO at Topgolf Callaways Brands, in a released statement. “At the same time, Topgolf has a different operating model, capital structure and investment thesis than Callaway, and as a result, the Board has determined that separating Topgolf will best position Topgolf and Callaway for success and maximize shareholder value.”
In addition to its golf entertainment, which transformed the driving range business by mixing gameplay with sports bar-level entertainment and hospitality at more than 150 U.S. and international venues, Topgolf has pursued other developments in the sport under a common roof with Callaway.
History of the combined companies
Carlsbad, California-based Callaway Golf Company, founded in 1982, acquired Topgolf Entertainment Group in March 2021, with an all-stock purchase worth $2.66 billion, creating the Topgolf Callaway Brands company. Meanwhile, Topgolf was founded in the U.K. by two brothers who were also avid golfers.
While not as visible on buildings as Topgolf, Callaway has a large following within the golf world. According to a company press release, the company’s namesake golf equipment, which currently sits as the No. 1 brand in club sales in the U.S. and the No. 2 ball brand, Callaway’s business portfolio includes:
- Odyssey putters
- The Ogio accessories brand
- The Travis Mathew apparel brand
- The Jack Wolfskin outdoor apparel and equipment brand
- The Toptracer ball-flight analytics and gaming technology brand
The combined company aggressively pursued new digital initiatives. Sai Koorapati recently decamped Topgolf Callaway after spending 10 years building out the company’s digital footprint and online capabilities. For the last three, he was senior vice president of global information technology. He is now senior vice president, chief technology officer for toymaker Mattel.
How Topgolf and Callaway would be divided
According to Top Golf Callaway Brands, Callaway will consist of the company’s existing golf equipment, Toptracer technology and active lifestyle businesses. These businesses generated revenue of approximately $2.5 billion for the last 12 months through Q2 2024.
The Topgolf business will consist of the Company’s existing Topgolf business, with the exception of Toptracer. Revenue for the operations reached approximately $1.8 billion in the last twelve months through Q2 2024.
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