Will the Topgolf Merger Work for Callaway?
Callaway Golf (NYSE: ELY) announced last week that it is merging with Topgolf, the innovative golf entertainment business, in an all-stock deal.
Callaway shareholders were not happy about the announcement, sending the stock down 19% the next trading day. Callaway is taking on a lot of debt and diluting shareholders with the acquisition, so investors shouldn't be too shocked by the stock drop, but looking past first reactions, what they should be focused on is whether the Topgolf acquisition will be successful for Callaway over the long term.
Source Fool.com
