A freezer of fresh games.The development pipeline at Glu Mobile looks very promising. It has new titles set to FIFA Coins launch soon, including Tap Sports Fishing, Deer Hunter World, along with a upgraded version of Tap Sports Baseball for the 2021 season. EA plans to deliver Tap Baseball to new countries with its own licensing expertise from EA Sports.There is also Table & fresh, a brand new lifestyle match, along with a variety of hyper-casual games launching from Glu's Crowdstar studio.

What's more, Glu Mobile could bring new ideas to EA about ways to decorate certain titles. The company reported seeing positive early results from this initiative on the last earnings call.

Growth at an unbiased price.It's always worth checking the price that a business is paying when it declares a significant acquisition. As Warren Buffett has said,"Price is what you pay, value is what you get." Around three popular test metrics, Glu Mobile seems just like a good 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 cash flow multiple at 47.

On a forwards price-to-earnings basis, Glu trades at a multiple of 25, which resembles a relatively good deal compared to its bigger peer reviewed Zynga, which deals in a greater forward P/E of 28. Glu is also a better bargain on a price-to-sales basis using a multiple only under four, while Zynga transactions at closer to six times sales, up there with the industry's top gaming stocks.

EA's earned money to spare.EA entered calendar 2021 with plenty of cash to reinvest or obtain top-notch studios like Glu to buy FIFA Mobile Coins extend its dominance in the gambling market.The company generated $1.9 billion in free cash flow during the previous four quarters.