24/7 Market News: Siyata Mobile Unveils ValueScope's $185.9M Core Gaming Valuation with Blockbuster Growth Projections

Rhea-AI Summary

Siyata Mobile (NASDAQ: SYTA) has received a valuation report from ValueScope for its planned merger target Core Gaming, setting the enterprise value at $185.9 million as of November 30, 2024.

Core Gaming's revenue growth trajectory shows impressive figures: $13.2M (2021), $38.9M (2022), $57.0M (2023), estimated $90.8M (2024), with projections of $145.8M (2025) and $240.8M (2026). The company's EBITDA margins are expected to reach 8.9% in 2026, achieving $21.4M.

Using industry-standard EV/Sales multiples of 3x-4x on projected 2026 revenue, Core Gaming's potential enterprise value could range from $722.4M to $963.2M. The company currently serves 40 million monthly active users with its AI-enhanced entertainment apps.

Positive

• Strong historical revenue growth from $13.2M (2021) to $57.0M (2023)
• Projected revenue growth to $240.8M by 2026
• Large user base of 40 million monthly active users
• Expected improvement in EBITDA margin to 8.9% by 2026
• Significant potential enterprise value increase to $722.4M-$963.2M by 2026

Negative

• Current market capitalization of only $5M suggests significant market skepticism
• Legacy shareholders will retain only 10% ownership post-merger

Insights

Financial Analyst specializing in M&A

The ValueScope valuation report represents a game-changing development for Siyata Mobile's strategic trajectory. The $185.9 million enterprise value assigned to Core Gaming dramatically exceeds Siyata's current $2.07 million market capitalization, creating an extraordinary value arbitrage opportunity.

Core Gaming's revenue acceleration is particularly compelling - growing from $13.2 million in 2021 to a projected $240.8 million by 2026, representing an exceptional 1724% growth over five years. This suggests the merger could fundamentally transform Siyata's financial profile.

The valuation metrics appear conservative, using 3-4x forward sales multiples when high-growth mobile gaming companies often command premium valuations. Even at the lower multiple, the $722.4 million enterprise value projection suggests potential for substantial shareholder value creation.

CEO Zacharin's statement that legacy shares should be worth over $16 million versus Siyata's current $5 million market cap indicates management confidence in capturing significant merger synergies. The anticipated EBITDA margin improvement to 8.9% by 2026 demonstrates Core's path to profitability amid rapid scaling.

This merger represents a clear inflection point for Siyata, potentially transforming it from a small-cap entity into a meaningful player in the mobile gaming space with AI capabilities and 40 million monthly active users.

Tech Industry Expert

Core Gaming's valuation reflects the convergence of two powerful market forces: AI integration and mobile gaming monetization. The company's 40 million monthly active users represent a substantial audience foundation that typically commands premium valuations in the digital entertainment space.

What's particularly noteworthy is Core's consistent revenue acceleration during market volatility, growing from $57 million in 2023 to an estimated $90.8 million in 2024 - a 59% year-over-year increase even as many tech companies struggled with growth deceleration.

The AI enhancement of gaming apps represents a strategic differentiator in monetization efficiency. Unlike traditional mobile games that rely primarily on in-app purchases or advertising, AI-optimized experiences can dynamically adjust to user behavior, potentially increasing engagement metrics, retention rates, and conversion opportunities.

The projected EBITDA margin expansion to 8.9% suggests operational leverage is beginning to materialize as the platform scales. This trajectory parallels successful gaming platforms that typically see margin expansion after achieving significant user scale.

For Siyata shareholders, this merger effectively pivots the company into a high-growth sector with stronger digital transformation tailwinds than its current business. The access to Core's technology stack and user base creates multiple potential revenue expansion vectors beyond the current projections.

Denver, Colorado--(Newsfile Corp. - March 27, 2025) - 247marketnews.com, a pioneer in digital media dedicated to the swift distribution of financial market news and information, today announced that Siyata Mobile (NASDAQ: SYTA) (Siyata) released a pivotal valuation report from ValueScope, LLC, a Marshall & Stevens company, pegging Core Gaming's enterprise value at $185.9 million as of November 30, 2024. This blockbuster assessment, tied to Siyata's planned merger with Core Gaming, announced February 26, 2025, forecasts a meteoric rise, with revenues soaring to $240.8 million by 2027 and a potential enterprise value quickly topping $963 million-a jaw-dropping leap.

Please click here to view ValueScope's Core Gaming valuation report or click here for further information at 24/7 Market News.

Core Gaming logo

ValueScope expects Core Gaming, an AI-driven mobile gaming innovator, to continue to experience its exponential year-over-year revenue growth trajectory. Core Gaming's reported revenue grew from $13.2 million 2021, $38.9 million in 2022, $57.0 million in 2023, an estimated $90.8 million for 2024, and is expected to climb to $145.8 million this year and $240.8 million in 2026. Fueled by global adoption of its AI-enhanced entertainment apps and sharper monetization, the company's EBITDA margins are set to jump to 8.9% in 2026, hitting $21.4 million.

Applying industry-standard EV/Sales multiples to ValueScope's projected 2026 Core Gaming revenue of $240.8 million can help determine a projected valuation range. Mobile gaming peers like AppLovin trade at 3x-5x sales, reflecting growth and profitability potential, while mature players like Electronic Arts hover near 4x. Core's AI edge, 40 million monthly active users (MAUs), and history of rapid year-over-year growth rate justify a premium, but let's assume a conservative 3x to 4x range, which translates to the following valuation calculations.

Low End (3x): $240.8M × 3 = $722.4 million

High End (4x): $240.8M × 4 = $963.2 million

ValueScope logo

ValueScope, LLC, a Marshall & Stevens company, is recognized as the gold standard in financial valuation. The Southlake, Texas-based firm is now part of a Los Angeles valuation titan since July 2024, blends nearly a century of Marshall & Stevens' gravitas (founded 1932) with ValueScope's razor-sharp expertise. 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.

Siyata logo

Siyata Mobile (NASDAQ: SYTA)

Please click here to view ValueScope's Core Gaming valuation report or click here for further information at 24/7 Market News.

Aitan Zacharin, Core Gaming's CEO, will lead the combined companies when the merger is finalized. Zacharin, was recently quoted as saying, "If you extrapolate that number, the value of that 10% legacy shares should be worth over $16 million and with approximately 2 million shares currently outstanding, Siyata's market capitalization is hovering around $5 million."

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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/246307

FAQ

What is the current enterprise valuation of Core Gaming according to ValueScope's report for SYTA merger?

ValueScope's report values Core Gaming at $185.9 million as of November 30, 2024.

What are Core Gaming's projected revenue figures for 2025-2026 in the SYTA merger?

Core Gaming is projected to generate revenues of $145.8 million in 2025 and $240.8 million in 2026.

What is the projected enterprise value range for Core Gaming by 2026 in the SYTA merger?

Using industry multiples of 3x-4x sales, Core Gaming's enterprise value is projected to range between $722.4 million and $963.2 million by 2026.

What EBITDA margin is Core Gaming expected to achieve by 2026 following the SYTA merger?

Core Gaming is expected to achieve an EBITDA margin of 8.9%, reaching $21.4 million by 2026.

How many monthly active users does Core Gaming currently have prior to the SYTA merger?

Core Gaming currently serves 40 million monthly active users (MAUs).