Topgolf Callaway Brands Corp. (MODG) is hitting the reset button. The company announced Tuesday it's selling a 60% stake in its Topgolf and Toptracer business to private equity funds managed by Leonard Green & Partners for roughly $1.1 billion. Shares dropped 6.25% to $10.20 in premarket trading as investors digested the news.

The Deal Breakdown

Here's what the math looks like: Topgolf gets valued at around $1.1 billion total, and Topgolf Callaway expects to pocket approximately $770 million in net proceeds after adjustments. The company's board unanimously approved the transaction, which should wrap up in the first quarter of 2026.

Once the deal closes, there's a corporate identity shift coming too. The company plans to drop the Topgolf name entirely and go back to calling itself Callaway Golf Company, complete with a new NYSE ticker symbol: CALY.

Back to Basics

This isn't just financial engineering—it's a strategic pivot back to what the company knows best. Topgolf Callaway is refocusing on its Golf Equipment & Active Lifestyle platform, which includes brands like Callaway, Odyssey, TravisMathew, and Ogio. That streamlined portfolio pulled in roughly $2 billion in revenue over the last twelve months through Q3 2025.

The company plans to use the proceeds wisely: reinvest in core brands, pay down debt, and return capital to shareholders, likely through stock buybacks. As of September 30, the company had $865.6 million in cash and cash equivalents on hand, so there's flexibility to work with.