With the FIFA Coins accession of Glu Mobile, EA is going to have large and growing cellular business earning $1.32 billion in reservations. That includes over 100 million monthly gamers on mobile, bringing in EA's global reach across computers, games, and mobile platforms to 430 million gamers.
Growing at an unbiased price.It's worth checking the cost that a provider is paying when it declares that a significant acquisition. As Warren Buffett has said,"Price is what you pay, value is what you receive." Around three hot valuation metrics, Glu Mobile looks just like a fantastic value in the video game industry.EA is spending $12.50 a share in money to Glu Mobile shareholders, which puts the latter's price-to-free cash flow multiple at 47.
On a forwards price-to-earnings foundation, Glu trades at a multiple of 25, that looks like a relatively good deal in comparison to its bigger peer reviewed Zynga, which trades in a higher forward P/E of 28. Glu is also a much better bargain on a price-to-sales basis using a multiple only under four, while Zynga transactions at nearer to 6 times earnings up with all the industry's top video game stocks.
EA's got cash to spare.EA entered calendar 2021 with lots of cash to reinvest or obtain elite studios such as Glu to expand its dominance from the gambling market.The cheap FIFA Mobile Coins company made $1.9 billion in free cash flow over the previous four quarters.