Siyata Mobile and Core Gaming Merger: A Strategic Synergy for AI-Driven Telecom and Gaming Growth

The proposed merger between Siyata Mobile (NASDAQ: SYTA) and Core Gaming represents a bold repositioning in the intersection of artificial intelligence, gaming, and mission-critical communications. As of July 2025, the $185 million deal is on the cusp of NASDAQ approval, with regulatory filings and strategic clarity suggesting a near-term close. For investors, the transaction raises a critical question: How does the fusion of Siyata's telecom infrastructure and Core Gaming's AI-driven content creation tools create durable value in a market poised for explosive growth?

Combined IP Portfolio: A Catalyst for Scalability

Core Gaming's intellectual property is the linchpin of its AI-driven business model. Its proprietary Compute Pool System (CPS) dynamically allocates computational resources for AI tasks, enabling real-time video generation, avatar rendering, and user interactions without overprovisioning infrastructure. This system supports Core Gaming's AI COMIC App, a flagship product that allows users to generate studio-quality content in seconds, including AI-driven avatars, manga-style animations, and personalized face swaps. The app has already demonstrated a 50% increase in content production efficiency and a 40% reduction in creation time, directly boosting user engagement and monetization.

Siyata's contribution is equally transformative. Its patented 5G Push-to-Talk over Cellular (PoC) technology, including the rugged SD7 ULTRA device, provides a high-reliability backbone for low-latency delivery of AI-generated content. By integrating Core Gaming's AI tools with Siyata's 5G infrastructure, the merged entity could unlock new revenue streams in defense, logistics, and public safety sectors. For example, AI-driven diagnostics or training simulators could be deployed via Siyata's mission-critical networks, blending telecom and enterprise software.

The synergy extends to Core Gaming's AI Business Intelligence (BI) Platform, which optimizes ad targeting and user retention. This system drives a 30% higher average revenue per user (ARPU) compared to traditional gaming models, creating a high-margin monetization layer. When combined with Siyata's telecom partnerships (e.g., T-Mobile, Verizon), the platform could scale AI-driven advertising into new verticals, such as enterprise marketing or personalized content for first responders.

Market Access: Expanding Beyond Gaming

The merger's strategic value lies in its ability to leverage overlapping markets. Core Gaming's 43 million monthly active users (MAUs) across 140 countries provide a global user base for Siyata's telecom solutions. Conversely, Siyata's partnerships with Tier 1 carriers and its shift to U.S.-based 5G device manufacturing reduce supply chain risks and align with the $150 billion U.S. telecom equipment market.

A key differentiator is Core Gaming's Nowifi platform, an offline gaming solution targeting 1.8 billion users in low-connectivity regions like Southeast Asia and Africa. By pairing this with Siyata's 5G infrastructure, the merged entity could monetize emerging markets through hybrid models—offering premium AI content delivery over 5G while maintaining offline accessibility.

Moreover, the combined company's access to the $28 billion AI gaming market is bolstered by its ability to acquire or develop complementary technologies. Core Gaming's AI tools are already being applied to enterprise solutions like PulsePro and Phone AIMaster, expanding their utility into marketing, education, and content creation. This diversification reduces reliance on volatile gaming cycles and opens avenues for recurring revenue.

AI Infrastructure: Building a Flywheel of Growth

The merged entity's AI infrastructure is designed to create a self-reinforcing value cycle. Core Gaming's BigP Backend and Cloud Orchestration system, which dynamically scales across global cloud providers, ensures that AI tasks are executed cost-effectively. This infrastructure supports rapid iteration of new features, such as dialogue-driven animations or mood-based styling, keeping Core Gaming's platforms ahead of competitors.

Meanwhile, Siyata's 5G standalone (SA) infrastructure ensures that AI-generated content can be delivered seamlessly to users in high-demand markets. For instance, the SD7 ULTRA device, already integrated into U.S. first responder programs, could serve as a distribution channel for Core Gaming's apps, ensuring low-latency access to AI tools in mission-critical scenarios.

The financial implications are striking. Core Gaming's revenue is projected to exceed $100 million in 2025, with a 2026 valuation of $722.4 million to $963.2 million at 3x to 4x revenue multiples. This implies a 22.4x return on the $185 million merger cost, underpinned by Core Gaming's 28.4% CAGR in the global AI gaming market.

Investment Considerations: Risks and Rewards

While the merger offers compelling upside, investors must weigh several risks. The pending NASDAQ approval introduces regulatory uncertainty, and the integration of two distinct business models could strain operational execution. Core Gaming's AI tools, though innovative, face competition from platforms like Midjourney and Runway ML, which could erode margins. Additionally, Siyata's legacy telecom business remains exposed to macroeconomic headwinds, such as slowing 5G adoption or carrier contract renegotiations.

However, the merger's tax-efficient structure and guaranteed 10% equity stake for legacy Siyata shareholders (with a potential special stock dividend) align incentives for long-term growth. Aitan Zacharin, Core Gaming's CEO, has emphasized a focus on profitability and scalability, with a clear roadmap to $240.8 million in 2026 revenue. For investors, the key is to monitor the Form 8-K filing, which will confirm the merger's completion and provide updated guidance.

Conclusion: A High-Conviction Bet on AI and Telecom Convergence

The Siyata-Core Gaming merger is more than a financial transaction—it's a strategic repositioning into the future of AI-driven content and mission-critical communications. By combining Core Gaming's AI infrastructure with Siyata's telecom expertise, the merged entity is uniquely positioned to capitalize on the $28 billion AI gaming market and the $10 billion PoC market.

For investors with a 3–5 year horizon, this merger represents a high-conviction opportunity. The projected revenue growth, coupled with the company's ability to monetize AI tools across multiple verticals, suggests significant upside. However, patience is required: The NASDAQ approval and post-merger integration will determine whether the combined entity realizes its full potential.

In a world where AI is reshaping industries, the Siyata-Core Gaming merger is a bold bet on the future. For those willing to navigate the near-term uncertainties, the rewards could be substantial.