The writing could be on the wall for Callaway (ELY -0.1%) as it stands as one of the last pure-play golf names around amid industry consolidation after Golf Towne merged with Golfsmith (GOLF +0.1%). With big sporting goods names such as Nike (NKE -0.4%), Adidas (ADDYY.PK), and Fila throwing their clout around, Callaway has a major challenge and on its hands. With ELY -22.2% since shanking its Q1 report, could Nike be interested in a bid?
Privately-held Golf Town acquires Golfsmith (GOLF) for $6.10 a share - marking a 29.5% premium over Friday's closing price. The deal is slated to occur in Q3 and is not subject to a financing condition.