Why Acushnet Holdings Stock Is Popping Today

  • Acushnet Holdings Corp GOLF shares are trading higher by 5.00% Tuesday following the announcement of PGA Tour merger with LIV Golf.
  • Today, PGA Tour, DP World Tour (or the European PGA Tour) and LIV Golf signed a merger agreement for an undisclosed term.
  • LIV Golf is backed by the Saudi Arabia Public Investment Fund (PIF), controlled by the Saudi crown prince.
  • With the acquisition, all entities decided to end all pending litigation between them.
  • All organizations will work together to set a fair and objective process for players who want to re-apply for PGA or DP World Tour membership after completing the 2023 season.
  • PIF will invest new capital into the new, yet-to-be-named company, which is expected to boost commercial businesses, drive increased fan engagement and accelerate growth initiatives. 
  • “This transformational partnership recognizes the immeasurable strength of the PGA TOUR’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf’s players, commercial and charitable partners and fans.” said PGA TOUR Commissioner Jay Monahan. 
  • The Board of Directors of the new entity will include PIF Governor Yasir Al-Rumayyan as Chairman and Jay Monahan as Chief Executive Officer. 
  • In the future, the PGA Tour will appoint a majority of the Board and hold a majority voting interest in the combined entity.
  • Price Action: GOLF shares are up 5.19% at $49.04 pn the last check Tuesday.
  • Photo by Tyler Hendy via Pexels
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