24/7 Market News: Siyata Mobile's Core Gaming Merger Spotlight

Rhea-AI Summary

Siyata Mobile (NASDAQ: SYTA) has announced a significant $160 million merger with Core Gaming, an AI-driven gaming company. Core Gaming's impressive performance includes $80 million in 2024 revenue, 40 million monthly active users, and 600 million downloads across 2,000+ games in 140 countries.

The merger, announced February 26, 2025, and expected to close in April, features a unique structure for record date shareholders. Core Gaming has demonstrated remarkable growth, with revenue increasing from $13.2 million in 2021 to an estimated $90.8 million in 2024. According to ValueScope's valuation, the merger could potentially offer a 13X to 18X arbitrage opportunity for Siyata shareholders.

Core Gaming's CEO, Aitan Zacharin, will present the company's growth strategy at the AI & Technology Virtual Investor Conference on April 3, 2025, targeting expansion in the $126 billion mobile gaming market.

Positive

• Core Gaming's revenue grew significantly from $13.2M (2021) to $90.8M (2024)
• Strong user base with 40M monthly active users and 600M downloads
• Merger structure includes downside protection for shareholders
• Potential 13X to 18X return for record date shareholders
• Access to $126B mobile gaming market opportunity

Negative

• Siyata's current market cap is only approximately $8.4M
• Merger completion subject to closing conditions and potential delays
• Significant share dilution expected for current shareholders

Insights

Financial Analyst

Siyata Mobile's planned $160 million merger with Core Gaming represents a profound transformation that offers exceptional upside potential for existing shareholders. This transaction structure provides a compelling risk-reward profile, effectively functioning as a reverse merger where Core Gaming—with $80 million in 2024 revenue—acquires Siyata's public listing.

The economics of this deal are particularly notable: Core Gaming's $160 million valuation dwarfs Siyata's approximate $8.4 million market cap (based on 4.1 million fully diluted shares). This 19:1 value disparity creates the potential arbitrage opportunity referenced in the announcement.

Core Gaming brings substantial operational scale with 40 million monthly active users and 600 million downloads across 2,000+ games. Their revenue trajectory—growing from $13.2 million in 2021 to an estimated $90.8 million in 2024—demonstrates impressive 686% three-year growth.

The merger mechanics, using Siyata's 10-day VWAP to determine share issuance, creates a formula-based approach to distributing the combined entity's ownership. The independent valuation from ValueScope provides third-party validation for Core Gaming's $160 million valuation.

While the projected 13X-18X return potential for record date shareholders represents an optimistic scenario, the transaction structure does appear to create meaningful value with downside based on the information provided.

04/01/2025 - 10:40 AM

Core Gaming CEO to Share Growth Strategy Details April 3

Denver, Colorado--(Newsfile Corp. - April 1, 2025) - 247marketnews.com, a pioneer in digital media dedicated to the swift distribution of financial market news and information, reports today that Siyata Mobile (NASDAQ: SYTA) (Siyata) is rewriting the script with a spotlight on its $160 million Core Gaming merger and the real fireworks hit on April 3, at the AI & Technology Virtual Investor Conference.

Core Gaming's CEO, Aitan Zacharin, will take the virtual stage at 10:30 AM ET on VirtualInvestorConferences.com, unpacking a growth strategy that ValueScope, LLC—the Marshall & Stevens valuation gold standard—projects may increase its enterprise value.

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

Core Gaming logo

If realized, the current 2X arbitrage play could grow to 13X to 18X for record date Siyata shareholders, post-merger.

Core Gaming, an AI-driven gaming powerhouse, raked in $80 million in 2024 revenue, boasts 40 million monthly active users (MAUs), and notched 600 million downloads across 2,000+ games in 140 countries. However, Zacharin's April 3 pitch should highlight Core Gaming's plan to target an even larger share of the estimated $126 billion mobile gaming market.

Core's revenue rocketed from $13.2 million in 2021 to an estimated $90.8 million in 2024.

Merger Math for Record Date Siyata shareholders

The $160 million Core Gaming merger includes a built-in safety net for Siyata's shareholders, blending upside potential with downside protection. Announced February 26, 2025, and slated for an April close, this merger's structure may affect the record date shareholders' stake, depending on the upcoming price action.

For further merger math details, including examples, please click here.

Siyata logo

Siyata Mobile (NASDAQ: SYTA)

Core Gaming's $160 million valuation will be divided by Siyata's 10-day VWAP record date value to set the share issuance.

Based on fully diluted share structure (Including fully exercised ELOC) Siyata would have around 4.1 million shares at the record date, meaning Siyata would have an approximate $8.4 million market cap.

ValueScope logo

ValueScope, LLC, a Marshall & Stevens company, is recognized as the gold standard in financial valuation. From blockbuster mergers to high-stakes litigation, ValueScope has left its mark on some of Wall Street's prime transactions, wielding a meticulous approach that's the envy of the Street.

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

Stay Tuned: Don't Miss Out

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• Siyata's Investor Relations Portal: https://ir.siyata.net.
• Follow Siyata on X: https://x.com/SiyataMobile.
• Click here for Siyata's investor presentation.

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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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Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to a number of factors, including without limitation, the Company's ability to continue as a going concern, the popularity and/or competitive success of the Company's acquired football and other sports teams, the Company's ability to attract players and staff for acquired clubs, unsuccessful acquisitions or other strategic transactions, the possibility of a decline in the popularity of football or other sports, the Company's ability to expand its fanbase, sponsors and commercial partners, general economic conditions, and other risk factors detailed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update such forward-looking statements except in accordance with applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246909

FAQ

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

The merger is valued at $160 million, as announced on February 26, 2025.

How much revenue did Core Gaming generate in 2024?

Core Gaming generated $80 million in revenue in 2024.

What is the potential return for SYTA shareholders from the Core Gaming merger?

According to ValueScope's valuation, record date shareholders could see a 13X to 18X return post-merger.

When will Core Gaming's CEO present the growth strategy for SYTA?

Core Gaming's CEO will present at the AI & Technology Virtual Investor Conference on April 3, 2025, at 10:30 AM ET.

What is Core Gaming's current user base and market reach?

Core Gaming has 40 million monthly active users and 600 million downloads across 2,000+ games in 140 countries.