One of Callaway Golf's smartest investments in recent years -- outside of all the stuff that goes into making golf clubs -- has been in Topgolf.
Early on, Callaway put some money in the driving range-golf entertainment company, and the Texas-based Topgolf has exploded. The company has not only expanded throughout major cities in the United States, but the company is going global, already having locations in Canada through a licensing deal, as well announcing locations in Mexico and the United Arab Emirates as more American cities seek a Topgolf of their own.
Callaway has chosen to increase its total-dollar investment in Topgolf, announcing the hike in a regulatory filing. Completed on Dec. 26, 2017, Callaway's additional $20 million investment brings the company's stake in Topgolf to approximately 14 percent and to a cost-basis total of $70.5 million.
In the filing, Callaway said they record the street value of its stake in Topgolf at $290 million. There are some assumptions in getting to that valuation, but they're not unreasonable. That means, then, Callaway values Topgolf, which got the Callaway investment as part of its latest funding round, at $2.1 billion.