What's FUT Coins more, Glu Mobile may bring new ideas to EA about ways to monetize certain names. The business reported seeing favorable early outcomes from this initiative about the last earnings call.

Growing at a fair price.It's always worth checking the price a company is paying when it declares that a significant acquisition. As Warren Buffett has said,"Price is what you pay, value is what you receive." Across three hot valuation metrics, Glu Mobile seems just like a fantastic value in the movie game industry.EA is paying $12.50 per share in money to Glu Mobile investors, which puts the latter's price-to-free cash flow multiple at 47.

On a forwards price-to-earnings foundation, Glu trades in a multiple of 25, that resembles a relatively good deal in comparison to its bigger peer reviewed Zynga, which deals in a greater forward P/E of 28. Glu can also be a much better deal on a price-to-sales foundation using a multiple only under four, while Zynga transactions at closer to 6 times salesup with all the industry's leading gaming stocks.

EA's got cash to spare.EA entered calendar 2021 with tons of money to reinvest or obtain top-notch studios like Glu to expand its dominance in the gaming market.The company generated $1.9 billion in free cash flow during the previous four quarters. That's on top of the $6.7 billion in cash and cheap FIFA Mobile Coins short term investments in the balance sheet at the end of 2020.