Glu Mobile could bring fresh ideas to FIFA Mobile
A deep pipeline of FIFA Mobile Coins new games.The development pipeline in Glu Mobile looks really promising. It's new titles set to start soon, including Tap Sports Fishing, Deer Hunter World, and a updated version of Tap Sports Baseball for its 2021 season. EA intends to bring Tap Baseball to new nations with its licensing expertise from EA Sports.There is also Table & Taste, a new lifestyle sport, along with a selection of hyper-casual games starting from Glu's Crowdstar studio.
What is more, Glu Mobile could bring fresh ideas to EA about ways to monetize certain titles. The company reported seeing positive early outcomes from this initiative on the very last earnings call.
Growth at an unbiased price.It's always worth checking the price a business is paying when it declares that a major acquisition. Across three popular test metrics, Glu Mobile looks just like a good value in the movie game industry.EA is spending $12.50 a share in money to Glu Mobile investors, which places the latter's most price-to-free money flow multiple at 47.
On a forward price-to-earnings basis, Glu trades at a multiple of 25, which resembles a relatively great deal in comparison to its larger peer Zynga, which trades in a higher forward P/E of 28. Glu can be a better bargain on a price-to-sales foundation with a multiple just under four, while Zynga trades at nearer to 6 times earnings , up there with the industry's top gaming stocks. EA's got cash to spare.EA entered calendar 2021 with loads of cash to reinvest or obtain elite studios like Glu to expand its dominance in the gambling market.The company generated $1.9 billion in free cash flow over the last four quarters.
Even the Codemasters price is expected to close this month, even while Glu Mobile should shut during the June-ending quarter. Even after both of these deals are total, EA will still have a couple billion bucks' worth of money on the balance sheet with nearly $2 billion in free cash flow coming from every year.The addition of Glu Mobile will jump-start EA's expansion in a cell market that climbed an estimated 25% last year, reaching $86 billion in worldwide revenue, according to Newzoo.In short, this acquisition is a significant upgrade for Electronic Arts' mobile game business, which is why the stock surged to buy FUT Coins a fresh high on the information.
评论
发表评论