We raised the question back in 2023: was the Topgolf mania just another consumer hype bubble?

Turns out that may have been the case. Topgolf Callaway Brands had been trying to unload or spin off the Topgolf unit for some time, and now they have.

Bloomberg reports that Callaway has sold a 60% stake in its Topgolf and Toptracer division to Leonard Green & Partners in a deal valuing the business at about $1.1 billion. This means the 60% stake will generate about $770 million for Callaway. 

Callaway originally acquired Topgolf in 2020 for about $2 billion. After the sale closes in 1Q26, the company will rebrand itself as Callaway Golf Company under the ticker "CALY" and refocus on its core golf equipment brands, stepping away from the struggling golf-experience chain.

In September, Golf Digest published a report based on conversations with former Topgolf executives Devin Charhon and Michael Canfield, revealing that Topgolf never achieved a stable flow of returning customers (cost was a major factor).

The former execs left the company to start Blue Jeans, which created the "Golf Ranch" brand, modernizing aging driving ranges and making it more of an actual practice facility for golfers rather than the Togolf experience of fancy screens and lights. It turns out golfers just want to practice.  

Well, that wasn't as planned. 

Golf Ranch sounds more reasonable.