Callaway Golf Co. is approaching a deal to buy Topgolf Entertainment Group in a deal that would value the Dallas-based driving range-entertainment hybrid at more than $2 billion, according to a report from the Wall Street Journal.

The Journal added that a deal could be finalized this week, assuming talks don't fall apart. Callaway currently owns a 14% stake in Topgolf which is valued at $290 million, The Street noted.

The deal would allow the equipment-manufacturing company to tap into the entertainment space. Topgolf establishments provide food, drinks, and games for customers. Topgolf is also a great outdoor activity where patrons can remain socially distant amid the COVID-19 pandemic.

In January, Topgolf was reportedly in talks for an initial public offering with Morgan Stanley, JPMorgan Chase & Co., and Bank of America Corp., for a potential value of $4 billion, Bloomberg reported. More than three months later, the golf entertainment conglomerate still hasn’t gone public.

In June, Topgolf chief executive Dolf Berle told Dallas Business Journal the company’s goal is for all venues to become profitably by the end of the year. Berle added that he forfeited his salary and his senior team took voluntary salary cuts during the COVID-19 pandemic. In December 2019, the company had more than 20,000 employees.

Berle also said Topgolf’s expansion plans were slowed by the pandemic, but it still has projects in the pipeline for 2022 and 2023. The company opened its newest location in Monterrey, Mexico, in September and now operates out of 63 locations over four countries. Berle said in June a Dubai location could open by year-end.

Callaway's stock climbed as much as 8% after the report. Callaway shares rose as high as $21.50 following the Journal report, marking the biggest intraday gain since June 29. The stock had fallen 6.1% this year through Monday’s close, Bloomberg reported.

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