What is more, Glu Mobile can bring fresh ideas to FIFA Mobile Coins EA about how to monetize certain names. The business reported seeing positive early results from this initiative on the very last earnings call. Growth at a fair price.It's always worth checking the cost that a company is paying as it declares that a major acquisition. Across three hot test metrics, Glu Mobile looks like a fantastic value in the video game industry.EA is spending $12.50 a share in cash to Glu Mobile investors, which places the latter's most price-to-free money flow multiple at 47.

On a forwards price-to-earnings foundation, Glu trades in a multiple of 25, that resembles a relatively great deal compared 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 foundation using a multiple just under four, whereas Zynga trades at closer to 6 times earnings up there with the industry's top gaming stocks.

EA's got cash to spare.EA entered calendar 2021 with plenty of money to reinvest or obtain top-notch studios like Glu to expand its dominance from the gambling market.The company made $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.

Even the Codemasters deal is expected to close this month, even while Glu Mobile should shut during the June-ending quarter. Even after these two prices are total, EA will nonetheless have a couple billion dollars' worth of money on the balance sheet with nearly $2 billion in free cash flow coming from every year.The inclusion of Glu Mobile will jump-start EA's expansion in a mobile market that grew an estimated 25 percent this past year, reaching $86 billion in worldwide revenue, according to Newzoo.In short, this acquisition is a major update for Digital Arts' cell game business, which is why the inventory jumped to a fresh high on the news.

Should you invest $1,000 in Glu Mobile right now?Before you consider Glu Mobile, then you'll want to hear this.Investing legends and Motley Fool Co-founders David and Tom Gardner just revealed what they believe are the 10 best stocks for investors to buy today... and Glu Mobile wasn't among them.The online investing support they have run for almost two years, Motley Fool Stock Advisor, has conquered the stock exchange by over 4X. * And buy FUT Coins right now, they believe you will find 10 stocks which are better buys.