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Topgolf Callaway Brands Corp., with legal guidance from Latham & Watkins LLP, has announced plans to spin off its popular golf entertainment business, Topgolf, into its own publicly traded company. This move will create two distinct golf-focused businesses: Callaway, a golf equipment and active lifestyle company, and Topgolf, a leading golf entertainment venue operator.

Topgolf Callaway Splitting Company in Two : Spin-Off Structure and Rationale

As part of the spin-off, Topgolf Callaway Brands will distribute at least 80.1% of Topgolf shares to its current shareholders. The separation will allow Callaway, which generated $2.5 billion in revenues over the 12 months leading up to the second quarter of 2024, to focus on its core golf equipment and lifestyle segments. Topgolf, which reported $1.8 billion in revenues over the same period, will focus on its entertainment venues, including over 100 U.S. and international locations.

Topgolf Callaway Brands believes that splitting the companies will enhance shareholder value by creating two more focused and agile organizations, each better positioned to capitalize on their unique growth strategies.

Leadership and Business Focus

After the separation, Callaway will continue under the leadership of current President and CEO Chip Brewer. Topgolf will be led by CEO Artie Starrs. Both companies will continue to collaborate, with Callaway remaining the exclusive provider of golf equipment for Topgolf venues under new commercial agreements.

Topgolf Callaway Splitting Company in Two : CEO’s Vision for the Split

"We believe this business, on a stand-alone basis, will be well understood and valued by the market," said Brewer. He emphasized that the spin-off will allow both companies to thrive independently, leveraging their distinct operating models and capital structures to maximize growth.

Brewer also highlighted Topgolf's success since merging with Callaway, citing significant investments that have expanded Topgolf's scale, digital offerings, and venue profitability, exceeding initial expectations.

Timing and Future Plans

While Topgolf Callaway Brands expects the spin-off to be finalized in the second half of 2025, the company noted that other separation options are still under consideration. The exact timing and terms of the spin-off remain subject to final decisions.