- Siyata Mobile (SYTA, Financial) and Core Gaming are set to merge in a $160 million deal.
- The merger will give Core Gaming shareholders approximately 90% ownership of the combined entity.
- Core Gaming reported a 46.4% revenue growth in 2023, with projections of $80 million in revenue for 2024.
Siyata Mobile (NASDAQ: SYTA) is poised to undergo a transformative shift through its planned $160 million merger with Core Gaming. This merger, expected to close within the current quarter pending regulatory approval, is set to significantly alter the ownership structure between the merging entities.
Core Gaming, since its inception in 2024, has emerged as a major entity in the mobile gaming industry. The company boasts a substantial user base, with over 43 million monthly active users spanning 140 countries. Its impressive portfolio includes more than 2,100 games, with cumulative app downloads exceeding 790 million.
Financially, Core Gaming demonstrated significant growth, achieving $57 million in revenue for 2023—an increase of 46.4% from $38.9 million in 2022. It is on course for an estimated $80 million in revenue for 2024. The merger is expected to result in Core Gaming shareholders owning roughly 90% of the new entity, while Siyata's current shareholders will retain at least 10% ownership, potentially through a special stock dividend post-merger.
This strategic merger positions the combined entity to capitalize on the burgeoning mobile gaming market, which is projected to expand to $157 billion by 2029, with a compound annual growth rate (CAGR) of 5.6% according to industry forecasts. Core Gaming's use of AI-driven technologies, including GPT-4 and diffusion-based models, enhances its capabilities in game development and marketing.
As the merger progresses, stakeholders and market observers will keenly monitor the integration and operational synergies expected from combining Siyata's communications solutions expertise with Core Gaming's dynamic growth trajectory in the mobile gaming landscape.
