Topgolf (MODG) His New 1-Year High on $1-Billion Sale of Entertainment Arm
We recently published Lackluster Market? Not for These 10 Soaring Stocks. Topgolf Callaway Brands Corp. (NYSE:MODG) is one of the best-performing stocks on Friday.
Topgolf rallied to a new one-year high on Friday, as investors positioned portfolios amid reports that it is exploring a sale of its entertainment business for around $1 billion.
At intra-day trading, the stock soared to its highest price of $11.60 before trimming gains to end the day just up by 6.52 percent at $11.27 apiece.
According to a report by Wall Street Journal, citing sources privy to the matter, Topgolf Callaway Brands Corp. (NYSE:MODG) is now in talks with private equity firm Leonard Green & Partners for the potential takeover.
Pixabay/Public Domain
The move followed announcements last year that it would split its businesses into two to focus on their strengths and capitalize on the strong growth of its Callaway gold equipment and lifestyle brand.
Meanwhile, Bloomberg reported last month that Topgolf Callaway Brands Corp. (NYSE:MODG) was also considering a sale of its Callaway brand and that it was already soliciting interests from private equity funds and fashion firms.
Earlier this month, the company announced a 308 percent wider net loss in the third quarter of the year at $14.7 million versus $3.6 million in the same period last year. Net revenues dropped by 7.8 percent to $934 million from $1.012 billion year-on-year.
In other news, Topgolf Callaway Brands Corp. (NYSE:MODG) announced the extension of a multi-year licensing agreement with Perry Ellis International Inc. for the design, manufacturing and distribution of Callaway-branded golf and lifestyle apparel through 2032. A new premium Callaway Apparel line is also expected to be launched no later than 2028.
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Disclosure: None. This article is originally published at Insider Monkey.
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