What's more, Glu Mobile may bring fresh ideas to EA about ways to monetize certain names. As an instance, Glu recently relaunched an e-commerce store in Design Home, which makes it the first
FIFA Mobile Coins game business to try out this exceptional angle of in-game monetization. The company reported seeing favorable early outcomes from this initiative on the very last earnings call.
Growing at an unbiased price.It's worth checking the price that a business is paying as it declares a significant acquisition. Around three popular test metrics, Glu Mobile looks like a fantastic value in the video game industry.EA is spending $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 basis, Glu trades in a multiple of 25, which looks like a relatively great deal compared to its larger peer reviewed Zynga, which trades at a greater forward P/E of 28. Glu can also be a much better bargain on a price-to-sales basis with a multiple just under four, whereas Zynga trades at closer to six times sales, up with all the industry's leading gaming stocks.
EA's earned cash to spare.EA entered calendar 2021 with loads of cash to reinvest or acquire top-notch studios for example Glu to expand its dominance in the
Buy FUT Coins gaming market.The company generated $1.9 billion in free cash flow during the previous four quarters. That is on top of the $6.7 billion in cash and short term investments in the balance sheet at the end of 2020.
The Wall