Siyata Mobile's Strategic Merger with Core Gaming: A High-Conviction Play in AI-Driven Gaming and Digital Media

The merger between Siyata Mobile (NASDAQ: SYTA) and Core Gaming represents a seismic shift in the $28 billion AI-driven gaming and digital media landscape. By combining Siyata's mission-critical telecommunications expertise with Core Gaming's AI-powered content creation and monetization tools, the transaction creates a unique hybrid entity poised to capitalize on two of the most disruptive forces in technology: AI-driven entertainment and global mobile connectivity. For investors, this is not just a merger—it is a strategic repositioning that unlocks long-term shareholder value through synergies, scalability, and first-mover advantage in an exploding market.

The Merger: A Strategic Reengineering

On February 26, 2025, Siyata Mobile and Core Gaming executed a $185 million merger agreement structured as a tax-efficient reorganization under U.S. tax code Section 368. The deal sees Siyata acquire Core Gaming, a Miami-based AI gaming studio with a portfolio of 2,100 mobile games, 790 million cumulative downloads, and 43 million monthly active users (MAUs). Core Gaming's proprietary AI COMIC App, launched in May 2025, has already demonstrated a 50% increase in content production efficiency and a 40% reduction in creation time, enabling users to generate studio-quality visual content in real time.

The merger's structure is designed to preserve value for Siyata's legacy shareholders, who will retain at least 10% equity in the combined entity. A special stock dividend is included to ensure this stake, aligning incentives for long-term growth. Meanwhile, Core Gaming's AI-based business intelligence (BI) platform—capable of optimizing ad targeting and user retention—adds a critical layer of monetization that complements Siyata's existing telecom infrastructure.

Synergies: Bridging Telecom and AI Gaming

The true power of this merger lies in its ability to merge two distinct but complementary industries. Siyata's expertise in mission-critical Push-to-Talk over Cellular (PoC) handsets and 5G SA (standalone) infrastructure provides a robust backbone for Core Gaming's AI-driven platforms. For example, the SD7 ULTRA, Siyata's flagship 5G device, is already integrated into U.S. first responder programs. This infrastructure can now serve as a distribution channel for Core Gaming's apps, ensuring low-latency delivery of AI-generated content to users in high-demand markets.

Conversely, Core Gaming's AI tools, such as its COMIC App, offer Siyata a pathway into the $28 billion AI gaming market. The app's ability to democratize content creation—allowing users to generate monetizable visual content—creates a flywheel effect: more users, more content, and higher engagement. This aligns with broader industry trends. The global AI gaming market is projected to grow at a 28.4% CAGR through 2033, driven by demand for personalized, real-time experiences.

Financials and Valuation: A Compelling Case for Growth

Core Gaming's financials underscore the merger's potential. Revenue surged from $13.2 million in 2021 to $57.0 million in 2023, with $80.8 million projected for 2024. ValueScope's analysis suggests 2026 revenue could hit $240.8 million, implying a combined company valuation of $722.4 million to $963.2 million at 3x to 4x revenue multiples—a range consistent with industry benchmarks.

The merger's tax-efficient structure and access to Nasdaq capital markets further enhance its appeal. Core Gaming's AI BI platform, which drives a 30% higher average revenue per user (ARPU) compared to traditional gaming models, provides a clear path to profitability. The combined entity aims to exceed $100 million in revenue in 2025, with Aitan Zacharin, Core Gaming's CEO and future leader of the merged company, emphasizing a focus on “profitability, not just growth.”

Market Positioning: Capturing the AI Gaming Revolution

The AI gaming market is not just growing—it is being redefined by platforms that prioritize user-generated content, real-time analytics, and personalized experiences. Core Gaming's AI COMIC App is a prime example of this shift. By enabling users to create and monetize content, the app taps into the $12 billion user-generated content (UGC) market, a sector expected to expand as AI lowers the barriers to creativity.

Moreover, the merger positions the combined entity to dominate emerging markets. Core Gaming's Nowifi platform, an offline gaming solution for low-connectivity regions, opens access to 1.8 billion users in Southeast Asia and Africa—markets with high smartphone penetration but limited infrastructure. Siyata's global distribution network, including partnerships with T-Mobile and Verizon, provides a ready-made infrastructure to scale these offerings.

Investment Thesis: High Conviction in a High-Growth Sector

For investors, the Siyata-Core Gaming merger presents a rare convergence of strategic innovation and financial scalability. Key risks include regulatory delays (the merger is pending Nasdaq approval) and execution challenges in scaling AI tools. However, the upside is substantial:
1. Revenue Diversification: The combined entity's dual focus on telecom and AI gaming reduces reliance on a single revenue stream.
2. AI-Driven Monetization: Core Gaming's BI platform and COMIC App offer scalable, high-margin revenue models.
3. First-Mover Advantage: With 43 million MAUs and a 1,300% user adoption surge in Japan/South Korea, the company is already gaining traction in high-margin markets.

The valuation case is equally compelling. At a projected 3x revenue multiple in 2026, the combined entity's $722.4 million valuation represents a 22.4x return on the $185 million merger cost. Even conservative assumptions suggest significant upside for early investors.

Conclusion: A Strategic Bet on the Future of Gaming

The Siyata-Core Gaming merger is more than a transaction—it is a strategic reengineering of a telecom company into a leader of the AI-driven gaming revolution. By leveraging synergies between 5G infrastructure and AI-powered content creation, the combined entity is uniquely positioned to capture a disproportionate share of the $28 billion market. For investors with a long-term horizon, this is a high-conviction play on a sector that is reshaping the future of digital media.

In a world where AI is no longer a buzzword but a business imperative, the Siyata-Core Gaming merger is a masterclass in strategic foresight. The question is not whether this deal will succeed—but how much value it will unlock for shareholders in the years to come.