It's worth checking the cost a company is paying as it announces a major
What's more, FIFA Coins could bring new ideas to EA about ways to monetize certain names. The company reported seeing favorable early outcomes from this initiative around the very last earnings call.
Growing at a fair price.It's worth checking the cost a company is paying as it announces a major acquisition. Across three hot valuation metrics, Glu Mobile seems like a fantastic value in the video game industry.EA is paying $12.50 a share in cash to Glu Mobile investors, which places the latter's price-to-free money flow multiple at 47.
On a forwards price-to-earnings basis, Glu trades at a multiple of 25, that looks like a relatively great deal in comparison to its bigger peer reviewed Zynga, which deals in a higher forwards P/E of 28. Glu can also be a better deal on a price-to-sales basis with a multiple only under four, whereas Zynga trades at nearer to 6 times sales, up with all the industry's leading video game stocks.
EA's got cash to spare.EA entered calendar 2021 having loads of money to reinvest or acquire elite studios for example Glu to extend its dominance from the gambling market.The company generated $1.9 billion in free cash flow during the previous four quarters. Even after these two deals are total, EA will still have a few billion bucks' worth of money on the balance sheet with nearly $2 billion in free cash flow coming in every year.The inclusion of Glu Mobile will jumpstart EA's increase in a mobile market that grew an estimated 25 percent last year, reaching $86 billion in global revenue, according to Newzoo.In short, this purchase is a significant upgrade for Electronic Arts' cell game business, and that's the FIFA Mobile Coins for sale reason why the inventory jumped to a new top on the news.