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Topgolf Callaway Brands (NYSE: MODG) is reportedly seeking buyers for at least some of its golf manufacturing assets. Investors are intrigued by the possibility, sending Topgolf shares up 11% as of 10:45 Eastern.

Time to unwind a three-year-old deal?

Callaway is one of the biggest names in golf, a manufacturer of clubs, balls, and other apparel and equipment. In 2021 the company acquired Topgolf, a chain of golf-related entertainment centers, in an effort to appeal to a younger audience that might not want to commit to hours on the golf course.

The deal has so far not been a hit with investors. Topgolf Callaway shares today trade at less than half of their summer 2021 highs.

According to reports, Callaway's private equity owners are considering options. South Korea's Chosun Daily says that major shareholders BlackRock Advisors, Providence Equity Partners, and Thomas Dundon, who together own about one-third of the company's shares, have put the Callaway business up for sale.

A sale could unwind the 2021 merger. According to the report, the shareholders are considering spinning Topgolf out as an independent and selling the golf equipment business. A Southern Korean investor is reportedly among the potential bidders.

Is Topgolf Callaway Brands a buy on the merger rumors?

The first thing to note is that this is just one report, and so far there has been no confirmation from other sources. Private equity owners routinely look at a wide range of options when seeking to exit investments. There could indeed be a sale in Topgolf Callaway's future, but investors need to understand this is far from a certain outcome.

That said, there is little indication that combining a golf equipment company with a golf-focused entertainment venue has generated the hoped-for synergies. Topgolf on its own was a growth story and could benefit from being allowed to operate on its own.

There is reason to be intrigued here, but investors would be wise to wait for further developments.

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Topgolf Callaway Brands. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.