Is a used set of golf clubs worth $1.2 billion? What if it came with Callaway Golf
Yesterday, Callaway announced that it was exploring "strategic alternatives" at this "opportune time" to "increase shareholder value." In plain speak, Callaway is merely asking if anybody is interested in topping the $1.2 billion offer.
This could get interesting. Yes, the golf club, ball and apparel specialist has had it pretty rough lately. The company and its stock were trailblazers through the early 1990s when its oversized Big Bertha clubs were all the rage, but that kind of heady growth proved unsustainable. Then again, this is a great brand and a respectable business.
Who will dive into the fray? Nike
A more logical buyer would be a company like Fortune Brands
Some other links to tee off from:
- We caught up with the company's former CEO two years ago.
- It's never too late to go putting for profits.
- Callaway's last quarter was more shank than steak.
- Got game? Check out our Foolish Golf Tips discussion board.
Longtime Fool contributor Rick Munarriz can play a mean round of Glow Golf. Once the sun shines and the holes get distant on a real course, his game falls apart. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.