24/7 Market News: Siyata Mobile's 2024 Annual Report Spotlights Transformative $160M Core Gaming Merger

Rhea-AI Summary

Siyata Mobile (NASDAQ: SYTA) has filed its 2024 Annual Report, highlighting a transformative $160 million merger with Core Gaming announced on February 26, 2025. Core Gaming, a Miami-based mobile gaming developer, boasts 43 million monthly active users and 790 million downloads across 2,100+ games in 140 countries.

The merger terms include issuing Siyata common shares based on a $160M valuation divided by the 10-day VWAP of Siyata's stock. A special provision ensures legacy Siyata shareholders maintain at least 10% ownership through a potential stock dividend. Core Gaming generated $80 million in revenue in 2024 following its Newbyera Technology acquisition.

Core Gaming's AI platform reduces game production time by 40% and increases content output by 50%. The company operates in the mobile gaming industry, projected to reach $126 billion in 2025. Siyata will continue its Push-to-Talk over Cellular (PoC) handsets business, recently highlighted by T-Mobile's recognition of its SD7 Ultra device.

Positive

• Strategic entry into $126B mobile gaming market
• $160M merger valuation indicates significant deal size
• Core Gaming's strong revenue of $80M in 2024
• Large user base with 43M monthly active users
• AI platform improving efficiency with 40% reduced production time
• T-Mobile recognition of SD7 Ultra device

Negative

• Significant dilution for current SYTA shareholders, retaining only 10% ownership
• Merger completion subject to regulatory approval
• Integration risks between gaming and PoC communication businesses

Insights

Financial Analyst

Siyata's $160M reverse merger with Core Gaming transforms the small-cap company into primarily a gaming business, diluting current shareholders to 10% ownership.

This merger represents a complete transformation for Siyata Mobile, effectively converting the tiny $5M market cap Push-to-Talk company into a significant mobile gaming enterprise. The transaction structure reveals the true nature of this deal - Core Gaming shareholders will own up to 90% of the combined entity, with special provisions ensuring legacy Siyata shareholders maintain at least 10% ownership through a stock dividend.

The valuation metrics are noteworthy: Core Gaming reportedly generated $80 million in revenue for 2024, making the $160 million acquisition price equal to a 2x revenue multiple. This represents a substantial revenue increase compared to Siyata's current operations, though profitability figures aren't disclosed.

While technically structured as Siyata acquiring Core Gaming, this has all the characteristics of a reverse merger - a private company (Core Gaming) using a smaller public company as a vehicle to access public markets without a traditional IPO. Siyata will continue its Push-to-Talk over Cellular business alongside the gaming operations, but the company's focus clearly shifts with this transaction.

The deal is expected to close this quarter pending regulatory approval. For existing Siyata shareholders, this represents both massive dilution and a fundamentally different investment thesis, essentially transforming their holdings into shares of a mobile gaming company with a small communications division.

Gaming Industry Expert

Core Gaming brings substantial mobile gaming assets to Siyata: 43M monthly users, 790M downloads, and AI technology that accelerates game development by 40%.

Core Gaming represents a significant player in the rapidly growing mobile gaming market, with 43 million monthly active users across 2,100+ games distributed in 140 countries. Despite being founded only in 2024, the company has achieved 790 million downloads, suggesting rapid expansion through acquisitions like Newbyera Technology

Their technological advantage comes from proprietary AI systems that reduce game production time by 40% while increasing content output by 50%. This efficiency in game development is crucial in the competitive mobile gaming landscape, where speed-to-market can determine success.

The market opportunity is substantial: Statistica projects the mobile gaming industry will reach $126 billion in 2025, growing at 5.6% CAGR to $157 billion by 2029. User numbers are expected to hit 2.4 billion by 2029, with particular strength in Southeast Asia where mobile device adoption has outpaced other regions.

Core Gaming's business model focuses on free-to-play games monetized through advertising partnerships with platforms like Applovin and Google. This aligns with industry trends showing fastest growth in the free-to-play segment. Their competitive edge stems from their proprietary BI platform with unique algorithms and AI technologies enabling efficient customer targeting across diverse markets.

Denver, Colorado--(Newsfile Corp. - April 22, 2025) - 247marketnews.com, a pioneer in digital media dedicated to the swift distribution of financial market news and information, highlights key developments from Siyata Mobile's (NASDAQ: SYTA) ("Siyata") recently filed SEC Form 20-F Annual Report for 2024. The report emphasizes Siyata's transformative merger with Core Gaming, announced on February 26, 2025, marking a strategic leap into the $126 billion mobile gaming industry.

Merger Details and Strategic Impact

In exchange for Core Gaming's outstanding common stock, Siyata will issue common shares based on an exchange ratio calculated as $160,000,000 divided by the volume-weighted average closing price of Siyata's common shares on Nasdaq for the 10-day trading period preceding the merger's effective time. The merger's closing, expected this quarter, pending regulatory approval.

The merger has a special provision for Siyata shareholders "In the event that the number of "Core"'s common shares (the "Legacy Siyata Shares") held by "Core" stockholders who are "Core" stockholders immediately prior to the Effective Time (the "Legacy Stockholders") would equal, following issuance of the merger consideration shares, less than 10% of the issued and outstanding common shares of Siyata on a fully diluted basis, then Siyata shall declare a stock dividend on the Legacy Siyata Shares outstanding as of the record date that is one business day prior to the Effective Time, such that the number of Siyata common shares held by the Legacy Stockholders represents at least 10% of the then-issued and outstanding common shares of Siyata. The stock dividend, if any, shall be paid on a date that is no more than six months after the Effective Time.

Core Gaming logo

Core Gaming: A Mobile Gaming Powerhouse

Core Gaming, founded in 2024 and headquartered in Miami, Florida, is a leading mobile gaming developer with over 43 million monthly active users and 790 million downloads across 2,100+ games in 140 countries. Its 2024 acquisition of Newbyera Technology Limited fueled its growth, generating $80 million in revenue. Core Gaming's AI-driven platform, including its proprietary BI suite, reduces game production time by 40% and boosts content output by 50%, leveraging advanced language, voice, image, and video models. The company's partnerships with platforms like Applovin and Google drive ad-based revenue, while its AI marketing tools optimize user acquisition and monetization.

Core's Industry and Market Opportunity

Over the last 15 years, mobile apps have become a major part of consumers' lives. Consumers today have access to a diverse range of mobile applications, allowing users to seamlessly access entertainment, shopping, healthcare, and other services. The rapid growth of mobile gaming, as one category of entertainment apps, has created opportunities for mobile game developers, as well as challenges for them in reaching consumers and monetizing their games in an increasingly crowded marketplace. Most developers lack access to the marketing and monetization tools required to stand out among countless competing mobile games. According to Statistica, the mobile gaming industry is projected to reach $126 billion in 2025, with a compound annual growth rate (CAGR) of 5.6% from 2025 to 2029, leading to a projected market value of $157 billion by 2029. The number of users worldwide is anticipated to reach 2.4 billion by 2029. Estimates show that gamers spend in excess of seven hours per week gaming, a figure that continues to grow.

Gaming on mobile devices has seen the greatest growth among the various gaming platforms, such as consoles and computers, largely driven by affordability of the devices and availability of content. According to Statistica, mobile gaming has its largest footprint in Southeast Asia, where mobile devices have seen substantial proliferation over the last decade, whereas console gaming has its largest footprints in North America and Europe, where disposable income is higher than in other regions. Within mobile gaming, the fastest growth has been among free-to-play games, where app developers earn revenue from advertising displayed within the game.

Core's Competitive Advantages

We believe that Core Gaming has a number of competitive advantages, first among them our track record of successfully launching and monetizing mobile games, which helps us to stand apart from competitors. Contributing to this track record are our high level of expertise in the mobile games ecosystem, our extensive relationships with third parties in the mobile game industry, and our proven ability to quickly expand into new markets and offerings. And underlying this success is our proprietary BI platform, with its unique algorithms and AI technologies that enable us to reach, with exceptional efficiency, a large number of target customers in diverse cultures and geographies for the many games we publish.

Core Gaming's AI-driven technology, which boosted content production by 50% and reduced production time by 40%, is set to redefine Siyata's growth trajectory. The merger, valued at $160 million by ValueScope, LLC, ensures that legacy Siyata shareholders retain a minimum 10% ownership in the combined entity through a special stock dividend within six months post-closing.

Siyata logo

Siyata Mobile (NASDAQ: SYTA)

A key aspect of the merger that's often overlooked, is that Siyata Mobile will continue to be a global developer of Push-to-Talk over Cellular (PoC) handsets and accessories, and it has focused on positioning its rugged communication devises business for future growth. In addition to Siyata's strategic reshoring of PoC handset production to the U.S., Siyata enhanced its profile within the major domestic carriers and those efforts are bearing fruit.

For example, the annual report states, "On February 25, 2025, the Company issued a press release announcing that the Company's SD7 Ultra was cited in a press release issued by T-Mobile that announced four major moves showing how T-Mobile is taking its support of first responders to the next level."

Please click here to view ValueScope's Core Gaming valuation report.

To review the SEC Form 20-F filing, please go to https://ir.siyata.net/sec-filings/ or www.sec.gov.

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About Siyata Mobile

Siyata Mobile Inc. is a leading global developer and provider of cellular communications solutions for enterprise customers, including first responders, transportation, logistics, and more. Their mission is to enable effective communication in critical moments through innovative technology.

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FAQ

What is the value of Siyata Mobile's merger with Core Gaming?

The merger is valued at $160 million, as determined by ValueScope,

How many monthly active users does Core Gaming have?

Core Gaming has over 43 million monthly active users and 790 million downloads across 2,100+ games in 140 countries.

What percentage will legacy SYTA shareholders retain after the Core Gaming merger?

Legacy Siyata shareholders will retain a minimum 10% ownership in the combined entity through a special stock dividend provision.

How much revenue did Core Gaming generate in 2024?

Core Gaming generated $80 million in revenue in 2024 following its acquisition of Newbyera Technology

What improvements has Core Gaming achieved with its AI platform?

Core Gaming's AI platform reduces game production time by 40% and increases content output by 50%.