What is FIFA Coins more, Glu Mobile can bring new ideas to EA about ways to decorate certain titles. As an example, Glu recently relaunched an e-commerce store in Design Home, which makes it the very first game company to try out this special angle of in-game monetization. The business reported seeing positive early outcomes from this initiative over the very last earnings call.
Growth at a fair price.It's worth checking the cost a provider is paying when it announces a significant acquisition. Across three hot valuation metrics, Glu Mobile looks like a good value in the video game industry.EA is spending $12.50 a share in money to Glu Mobile investors, which places the latter's most price-to-free cash flow multiple at 47.
On a forward price-to-earnings basis, Glu trades at a multiple of 25, which looks like a relatively good deal compared to its larger peer Zynga, which deals in a higher forward P/E of 28. Glu is also a better deal on a price-to-sales foundation using a multiple just under four, while Zynga trades at closer to six times sales, up there with the industry's leading video game stocks.
EA's got money to spare.EA entered calendar 2021 having loads of cash to reinvest or obtain elite studios like Glu to expand its dominance from the gaming market.The company generated $1.9 billion in free cash flow during the previous four quarters. Even after these two prices are full, EA will nonetheless have a few billion bucks' worth of cash on the balance sheet together with nearly $2 billion in free cash flow coming from every year.The inclusion of Glu Mobile will jumpstart EA's increase in a cell market that grew an estimated 25% last year, reaching $86 billion in worldwide revenue, based on Newzoo.In brief, this acquisition is a significant update for Electronic Arts' mobile game business, which is why the inventory jumped to a new high on cheap FIFA Mobile Coins the information.