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Callaway announces huge all-stock merger deal with Topgolf

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Callaway Golf has announced an all-stock merger agreement with TopGolf with the number of shares to be issued based upon an implied equity value of Topgolf of approximately $2 billion – including the 14% already owned by Callaway.

Callaway first invested in the golf entertainment company, Topgolf, back in 2006 entering an exclusive golf partnership agreement at all Topgolf venues.

 

On the new deal expected to be completed in early 2021, Chip Brewer, President and Chief Executive Officer of Callaway said that the all-stock merger between the two can create “an unrivaled golf and entertainment business”.

“Together, Callaway and Topgolf create an unrivaled golf and entertainment business. This combination unites proven leaders with a shared passion for delivering exceptional golf experiences for all from elite touring professionals to new and aspiring entrants to the game. We’ve long seen the value in Topgolf and we are confident that together, we can create a larger, higher growth, technology-enabled global golf and entertainment leader.”

Under the terms of the merger agreement, Callaway will issue approximately 90 million shares of its common stock to the shareholders of Topgolf, excluding Callaway, which currently holds approximately 14% of Topgolf’s outstanding shares. Upon completion of the merger, Callaway shareholders will own approximately 51.5%, and Topgolf shareholders (excluding Callaway) will own about 48.5% of the combined company on a fully diluted basis.

Topgolf’s revenue for 2019 was approximately $1.1 billion, and the company currently has 63 locations worldwide, including 58 in the U.S., and has more than 23 million customers. Find out all about Topgolf here.

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Gianni is the Assistant Editor at GolfWRX. He can be contacted at [email protected] Follow him on Twitter @giannimosquito

5 Comments

5 Comments

  1. Mike

    Oct 30, 2020 at 3:11 pm

    This is kind of hilarious. Other than them both being golf companies there really aren’t a lot of synergies here. Terrible move for Callaway to be honest. Watch for their stock price to sink like a rock even further.

    They think there’s big growth in these TopTracer products to sell to driving ranges, when the reality is personal launch monitors have become so cheap that hardcore golfers don’t need top tracer. A team of two guys in South Africa just created a pretty decent phone app that is a launch monitor.

    Topgolf’s are franchised, so at least they don’t have all of the carrying costs on their books but I think TopGolf will come back much slower than real golf–which is obviously booming.

    • Rascal

      Oct 30, 2020 at 5:50 pm

      You didn’t have to wait long, ELY tanked big time only a day after the announcement.

  2. Find it, Cut it

    Oct 28, 2020 at 5:29 pm

    Fairly appropriate. TopGolf is a golf-approximation entertainment company.

    And so is Callaway.

  3. Edward Bardoe

    Oct 28, 2020 at 9:44 am

    I loved the picture Golf channel.com used to illustrate the story, a barefoot drunk swinging away. Should rename the company “not golf”. Mostly a real estate play.

  4. Mark

    Oct 28, 2020 at 7:42 am

    I love the hyperbole viz. “…the company currently has 63 locations worldwide, including 58 in the U.S.”: barely a worldwide operation with 92% of your locations in one country.

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Golf 101: 5 Tips to building your golf bag with CH3 (+ Charles Howell III WITB)

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I think at this point it’s safe to say that Charles Howell III is the adopted son and patron saint of WRX.

Not only is he a member of the site and visits regularly, but he’s also an avid club nerd and tester. I’ve become friends with CH3 over the past couple of years and have had some fun gear geek sessions with him. Want to know the coolest thing of all? He’s still as passionate and curious about gear as we are and not just Titleist (who he is on staff with) he’s curious about it all.

So who better to ask about how to build a great golf bag than with a man who knows it, does, and plays for his livelihood week in and week out?

These are 5 Charles Howell III golden nuggets that any golfer can learn from—and oh yeah, his take on the future is spot on.

Rule #1: Stability over speed no matter what

“Even for the guys on tour, stabilizing the clubface is paramount to good driving. One of the reasons I love testing shafts so often is to see if there is that magic combo of speed and control. However, the stability of the clubhead and shaft have to be there—I could find a combo that’s 20 yards longer, but if it’s something I can’t control, it doesn’t have a place in my bag. Extra yardage is fun until it isn’t.”

Rule #2: Find wedges that can do it all

“I chose the Vokey SM8 M Grind in the 56 and 60, because as the grind spectrum goes, they fall dead in the middle for me but everyone is different. I discovered that finding a middle ground grind wise solves the “different wedges for different grass problems” some players find themselves in. Even at Augusta, there was more Bermuda sticking out than normal which made shots from behind 15 different for example a little trickier. Not only are you chipping back towards a downslope with water behind, but it’s also now into the grain. Knowing I had wedges to combat either scenario made it that much easier. As a player, you have to put all the grinds through the paces and see what one checks off the most boxes. It might be something you never considered.”

Rule #3 Forgiveness looks different for every player

“Iron set makeups have changed so much in recent years. Pay attention to the soles when choosing your irons, even in the longer irons. It would be easy to think that bigger heads wider soles would be a no-brainer to hit, but to be honest, it’s not that simple. Sometimes finding a sole that will help the club get in and out of the ground easily will get you that center contact you were looking for. Although guys on tour may choose beefier long irons, it’s pretty rare to find one with a really wide sole. Soles that large encourage a player to try and sweep it off the turf which is counter-intuitive with an iron in your hand. When getting fit, pay attention to attack angles and center contact with your longer clubs; you may find that thinner soles help you more than anything else.”

Rule #4 Enjoy the process of learning and testing

“Obviously playing for a living gives me the advantage of testing a ton of stuff, but it’s just as fun doing the research at home (online) and understanding what certain equipment can do and the idea behind it. I still rely on testing as much as I can to see what works but it’s the pursuit of knowledge that keeps it all fresh week in and week out. Technology is so good these days but like anything you have to ask questions, look around try some stuff and then make a decision. Remember it’s your golf bag, take some pride in demanding that every inch of it works for you.

Eyes on the future…

“I think as we go down this Bryson/distance chase, the ultimate result on tour will be a lot of two driver bags. Look at it this way, having a 47-inch driver for long bombs, and a 44.5 inch for tighter drives, and a 4-wood isn’t all that hard to imagine. Players can tweak lofts in the irons and wedges easily to adjust to gapping. It’s not rocket science, and I don’t think we are that far from seeing multiple players on tour doing it that way.”

Charles Howell III WITB

Driver: Titleist TSI3 (10.5 degrees, A1 SureFit setting)

Shaft: Graphite Design Tour AD XC 6 TX

3-wood: Ping G425 LST (14.5 degrees)

Shaft: Fujikura Atmos Black Tour Spec 8 X

7-wood: Ping G425 Max (20.5 degrees @20)

Shaft: Fujikura Atmos Black Tour Spec 9 X

Irons: Titleist T100 (4-6) 620 MB (7-9)

Shafts: Project X LZ 6.5 (hard stepped)

Wedges: Titleist Vokey Design SM8 (48-10F @47, 52-12F, 56-08M, 60-08M)

Shafts: True Temper Dynamic Gold Tour Issue S400

Putter: Scotty Cameron 009M

Ball: Titleist Pro V1

Grips: Golf Pride Tour Velvet Align

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GolfWRX Classifieds (12/3/20): Mavrik SubZero, rare Scotty Cameron, Wilson Staff

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At GolfWRX, we love golf equipment plain and simple

We are a community of like-minded individuals that all experience and express our enjoyment for the game in many ways. It’s that sense of community that drives day-to-day interactions in the forums on topics that range from best driver to what marker you use to mark your ball, it even allows us to share another thing – the equipment itself.

One of the best ways to enjoy equipment is to experiment and whether you are looking to buy-sell-or trade (as the name suggests) you can find almost anything in the GolfWRX BST Forum. From one-off custom Scotty Cameron Circle T putters, to iron sets, wedges, and barely hit drivers, you can find it all in our constantly updated marketplace.

These are some of the latest cool finds from the GolfWRX BST, and if you are curious about the rules to participate in the BST Forum you can check them out here: GolfWRX BST Rules

Member CLRMTgolfer – Wilson Staff forged combo set

This is one extremely nice custom combo set of irons from Wilson golf – from blades, all the way to the Staff utility, this set has everything you need for shotmaking.

To see the full listing and additional pictures check out the link here: Wilson staff iron set

Member EHSgolf1 – Callaway Mavrik SubZero driver

Your chance to get an almost new Callaway Mavrik SubZero for less than new price!

To see the full listing and additional pictures check out the link here: Callaway SubZero

Member Champ 2430 – Scotty Cameron Timeless longneck prototype

As they say “if you know you know” and this rare Scotty Cameron Prototype longneck is a thing of beauty – the only thing is I really hope you have a big golfing budget.

To see the full listing and additional pictures check out the link here: Rare longneck Cameron

Remember that you can always browse the GolfWRX Classifieds any time here in our forums: GolfWRX Classifieds

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Adidas X Vice Golf launch The Vice Golf Shoe by Adidas

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Adidas has teamed up with Vice Golf to launch the new Vice Golf Shoe inspired from off the course which includes a dozen Vice Pro Drip Lime x Adidas golf balls.

The Vice Golf Shoe from Adidas contains ultraboost and a signature lime-green colorway to accent the designs for life both on and off the golf course. The shoe features a camouflage pattern in gray and white on the top of the shoe, while a brand-new drip pattern decorates the boost material at the bottom.

The shoe features branding “discoverables”, such as a subtle Vice logo on the tongue of the shoe while a collab logo is celebrated within. The company’s motto “Embrace Your Vice” runs down the spine of the heel, while another Vice logo lives underneath the 3-stripe caging on the inside of the foot.

If golfers want a brighter color pop, the alternate neon lime laces give that option.

“Based in Bavaria like Adidas, we have always looked up to this global ambassador and brand that has made big moves in both the golf and footwear in recent years. It is a great honor to finally present the result of 22 months of work with tears of happiness when the final pair of shoes arrived” – Vice Golf founder and CEO Ingo Duellmann

In addition to the shoe, the packaging of the Vice Golf Shoe by Adidas is made to look, feel and act exactly like their signature golf ball packages. 

The bottom of the box is wrapped in a neon lime camouflage pattern, and the top cover features the exact, embossed Vice logo colored in neon lime drip pattern as seen and felt on the brand’s golf ball packaging. The connection continues after lifting the lid and discovering an actual box of Vice Pro Drip Lime golf balls, with Adidas logos, sitting in its own compartment.

The Vice Golf Shoe from Adidas (plus one dozen Vice Pro Drip Lime X Adidas golf balls) costs $219.95 and is available to purchase from December 7, 2020, 11 AM EST at ViceGolf.com.

 

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