Growth at FIFA Mobile Coins a fair price.It's always worth checking the cost that a business is paying when it declares a major acquisition. As Warren Buffett has said,"Price is what you pay, value is what you get." Around three popular test metrics, Glu Mobile seems like a fantastic value in the movie game industry.EA is paying $12.50 a share in cash 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 in a multiple of 25, that resembles a relatively good deal in comparison to its larger peer Zynga, which deals at a greater forwards P/E of 28. Glu can also be a much better bargain on a price-to-sales basis using a multiple just under four, while Zynga trades at closer to six times sales, up with all the industry's top gaming stocks.

EA's got money to spare.EA entered calendar 2021 with tons of money to reinvest or acquire top-notch studios like Glu to expand its dominance in the gaming market.The company generated $1.9 billion in free cash flow over the last four quarters.

The Codemasters deal is expected to close this month, even while Glu Mobile should close throughout the June-ending quarter. Even after these two prices are complete, EA will nonetheless have a couple billion bucks' worth of cash on the balance sheet together with nearly $2 billion in free cash flow coming in every year.The addition of Glu Mobile will jumpstart EA's growth in a mobile market that grew an estimated 25% this past year, reaching $86 billion in worldwide revenue, according to Newzoo.In brief, this acquisition is a significant upgrade for Electronic Arts' mobile game industry, which is the reason why the stock cheap FUT Coins surged to a new high on the information. * And at this time, they believe there are 10 stocks that are better buys.