Core Gaming's Strategic Acquisition of Siyata Mobile via Reverse Merger: Unlocking Synergies and Undervalued Growth Potential in the Mobile Gaming and Communications Sector

In October 2025, Core Gaming Inc. completed a transformative reverse merger with Siyata Mobile Inc., rebranding as Core AI Holdings, Inc., according to a PR Newswire release. This strategic move has repositioned the combined entity as a leader in AI-driven mobile gaming and mission-critical communications, unlocking significant synergies and undervalued growth potential in two high-growth sectors. By integrating Core Gaming's robust mobile gaming portfolio with Siyata's Push-To-Talk (PTT) technology, the new company is poised to capitalize on the explosive expansion of AI applications, projected to grow at a 38.7% compound annual growth rate (CAGR) through 2030, as noted in the PR Newswire release.

Strategic Rationale: Merging Gaming and Communications for AI-Driven Innovation

The merger was structured to leverage Core Gaming's strengths in mobile gaming-boasting 780 million lifetime downloads and $79 million in 2024 revenue-with Siyata's expertise in PTT communications, which provides rugged, carrier-approved devices for industries like logistics and public safety, as detailed in the PR Newswire release. The transaction valued Core Gaming at $160 million, with its shareholders receiving 67.3 million of Siyata's common shares, effectively giving them 90% ownership in the combined entity. While this diluted Siyata's original shareholders to a 10% stake, the strategic rationale centers on creating a diversified AI-focused holding company.

Aitan Zacharin, Core Gaming's former CEO and now CEO of Core AI Holdings, emphasized the company's intent to deploy AI across its platforms. For instance, Core Gaming's AI tools already enhance content production and user engagement in gaming, while Siyata's PTT technology offers real-time communication solutions for enterprise clients, according to the PR Newswire release. The integration of these capabilities could lead to hybrid products, such as AI-powered gaming experiences with integrated PTT features for multiplayer collaboration or enterprise-grade communication apps with gaming-style user interfaces.

Synergies: Cross-Industry Applications and Scalable Growth

The merger's most compelling aspect lies in its ability to create cross-industry synergies. Core AI Holdings plans to expand beyond gaming into sectors like healthcare, education, and logistics, where AI-driven PTT solutions could streamline workflows, as outlined in the PR Newswire release. For example, healthcare providers might use AI-enhanced PTT systems for real-time patient monitoring, while logistics firms could integrate gaming-style dashboards to improve operator engagement.

Financially, the combined entity benefits from Core Gaming's scalable revenue model and Siyata's established enterprise client base. Core Gaming's 40 million monthly active users and 140-country reach, according to a 24/7 Market News report, provide a foundation for monetizing AI-driven features, while Siyata's PTT segment offers recurring revenue from B2B contracts. This dual-engine approach reduces reliance on volatile consumer markets and positions the company to capture growth in both gaming and communications.

Undervalued Growth Potential: AI as a Catalyst

Despite the merger's strategic logic, Core AI Holdings remains undervalued relative to its growth prospects. The global mobile gaming industry, valued at $126 billion in 2025 per the PR Newswire release, is expected to see AI-driven innovations boost engagement and monetization. Core AI Holdings' focus on AI-powered gaming-such as dynamic difficulty adjustment, personalized content, and predictive analytics-positions it to outperform peers.

Moreover, the AI apps market's 38.7% CAGR, cited in the PR Newswire release, suggests that Core AI Holdings' cross-industry expansion could unlock substantial value. For instance, AI-driven PTT solutions for logistics or healthcare could command premium pricing, while gaming's AI tools might attract partnerships with major platforms like Steam or Apple Arcade. The company's recent 1-for-4 reverse stock split, aimed at meeting Nasdaq compliance and noted in the PR Newswire release, also signals a commitment to long-term stability, which could attract institutional investors.

Risks and Challenges

Critics may question the merger's dilution of Siyata's original shareholders and the execution risks of integrating two distinct businesses. However, the leadership transition-Marc Seelenfreund now leading Siyata PTT as President-demonstrates a clear governance strategy to manage these challenges, according to the PR Newswire release. Additionally, the company's focus on AI workflow automation and predictive analytics aligns with broader industry trends, reducing the risk of obsolescence.

Conclusion: A High-Conviction Investment Thesis

Core AI Holdings' reverse merger represents a bold but calculated move to dominate the AI-driven mobile gaming and communications sectors. By combining Core Gaming's user base and AI capabilities with Siyata's PTT infrastructure, the company is uniquely positioned to capitalize on two of the fastest-growing markets in 2025. For investors, the key metrics to watch include user growth in AI-enhanced gaming, enterprise PTT contract renewals, and the company's ability to monetize cross-industry applications. With the AI apps market expanding at 38.7% annually, as noted in the PR Newswire release, Core AI Holdings offers a compelling opportunity to invest in a company that is not just adapting to the AI revolution but actively shaping it.