Topgolf Callaway Brands has experienced a staggering 32% drop in share price, attributed to the slow performance of its golf entertainment business, which raises concerns over its $3 billion acquisition.
Even though Topgolf presents a positive experience for fans, the financial implications of its acquisition, compounded by excessive debt, have negatively impacted shareholder value and overall stock performance.
The company is contemplating a spinoff of its Topgolf venues, but analysts argue this may be too late to recover from the significant fallout after their pricey acquisition.
The merger caused substantial increases in debt for the company, with total debt reaching $2.65 billion, raising concerns about the sustainability of Topgolf’s model in today's market.
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