Topgolf Callaway Brands Corp (NYSE:MODG) is in discussions to sell its Topgolf unit to private-equity firm Leonard Green, potentially valuing the business at around $1 billion, the Wall Street Journal reported on Friday.
The potential transaction comes more than four years after Callaway acquired Topgolf in 2021 for roughly $2.66 billion, including the unit’s debt, in an all-stock deal that later prompted the company to change its name.
Since that acquisition, Callaway’s shares have declined about 65%. Shares of Topgolf Callaway jumped nearly 8% following the report Friday morning.
While the talks could result in a deal soon, sources told the WSJ that there is no certainty the discussions will lead to a completed transaction.
Leonard Green, based in Los Angeles, previously acquired a small stake in Topgolf and has provided input to management on the business, according to the report.
Topgolf operates entertainment venues that combine driving ranges with food, drinks, and social activities, but its growth has slowed in recent years. The company opened eight new locations in 2022, 11 in 2023, four in 2024, and just one so far in 2025.
At the time of the 2021 acquisition, Callaway had a market capitalization of around $6 billion.