Siyata Mobile merges with Core Gaming in $160m AI gaming expansion

Siyata Mobile Inc., a global developer of Push-to-Talk over Cellular (PoC) handsets, has signed a definitive merger agreement with Core Gaming Inc., a private AI-driven mobile gaming developer. The transaction, which values Core Gaming at $160 million, is expected to transform Siyata’s business direction by integrating AI-powered mobile gaming into its portfolio.

The merger marks a strategic pivot for Siyata Mobile as it seeks new growth opportunities beyond its traditional telecommunications market. By acquiring Core Gaming, the company is entering the mobile gaming industry, an expanding sector projected to reach $126 billion globally. This move aligns with industry trends where AI gaming developers are leveraging machine learning to enhance game engagement and monetization.

Siyata Mobile Expands Into AI Gaming With Core Gaming Acquisition

The agreement stipulates that Core Gaming will become a wholly owned subsidiary of Siyata Mobile through a stock-based transaction. The deal will see Siyata issue common shares to Core Gaming shareholders based on an exchange ratio derived from the company’s $160 million valuation. The final share allocation will be determined using a 10-day volume-weighted average price (VWAP) of Siyata’s stock prior to the transaction’s completion.

As part of the deal, leadership responsibilities will shift, with Core Gaming’s existing executive team taking control of the combined entity. Siyata’s current leadership will transition to focus on a newly established Push-to-Talk division, ensuring continued operations in its core telecommunications segment.

Siyata Mobile shareholders will receive a stock dividend within six months post-merger, guaranteeing they retain at least a 10% stake in the combined entity. This strategic move underscores Siyata’s commitment to delivering shareholder value while capitalizing on Core Gaming’s rapid growth trajectory.

Core Gaming’s AI Technology Poised to Disrupt the Mobile Gaming Industry

Core Gaming has positioned itself as a leading AI gaming developer, having created, published, and marketed over 2,000 mobile games across 140 countries. With more than 40 million monthly active users and a distribution network that has driven over 600 million downloads, the company has built a strong global presence in the mobile gaming industry.

Its success is largely attributed to proprietary AI-powered tools designed to enhance game development and user acquisition. By integrating advanced text, language, image, and video models, the company has improved content production efficiency by 50%, reducing development time by over 40%. These advancements have positioned Core Gaming as a competitive force in AI-driven game development, enabling it to deliver high-quality, engaging mobile games at an accelerated pace.

Industry experts highlight the growing role of AI gaming developers in shaping the future of mobile entertainment. The integration of AI algorithms has allowed companies like Core Gaming to analyze player behavior in real time, optimizing in-game experiences and increasing user retention. By leveraging AI-driven insights, the company has been able to refine monetization strategies, maximizing revenue opportunities in an increasingly competitive market.

The Growing Potential of AI Gaming in the Mobile Market

The mobile gaming industry has experienced exponential growth in recent years, fueled by advancements in AI, cloud gaming, and augmented reality. With the global gaming sector surpassing $126 billion, companies that integrate AI technology are gaining a competitive edge. AI gaming developers are redefining content creation, streamlining game design processes, and personalizing player experiences, leading to higher engagement rates and increased profitability.

As gaming companies continue to explore AI-driven innovation, industry analysts predict a surge in demand for mobile games that incorporate adaptive gameplay mechanics and real-time content generation. Core Gaming’s proprietary AI algorithms enable it to develop immersive gaming experiences that cater to diverse player preferences, setting it apart from traditional mobile game developers.

Siyata Mobile’s entry into the AI gaming sector through the acquisition of Core Gaming reflects a broader trend where technology companies seek to diversify their portfolios by tapping into high-growth digital markets. This strategic expansion positions Siyata as a key player in both telecommunications and mobile entertainment, leveraging AI to drive long-term business growth.

Regulatory Approval and Market Impact of the Siyata-Core Gaming Merger

The merger agreement has been unanimously approved by the boards of both Siyata Mobile and Core Gaming. The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals and customary closing conditions.

Industry analysts are closely monitoring the impact of this deal on Siyata Mobile’s market position, as investors evaluate the company’s shift toward AI-driven gaming. While Siyata has established itself as a leader in Push-to-Talk communications, its expansion into mobile gaming introduces a new revenue stream that could significantly alter its financial outlook.

The company will host a virtual press conference today at 4:05 p.m. ET to discuss the merger, providing further insights into its strategic direction and growth opportunities.

A New Era for Siyata Mobile: Combining AI Gaming With Telecommunications

With this acquisition, Siyata Mobile is charting a new path in AI gaming, signaling its commitment to embracing emerging technologies. The integration of Core Gaming’s AI-powered mobile game development capabilities with Siyata’s existing telecommunications expertise is expected to create a unique business model that spans multiple high-growth sectors.

By capitalizing on Core Gaming’s established distribution channels and AI-driven content creation, Siyata Mobile is positioning itself to compete in the expanding mobile gaming market while maintaining its presence in the critical communications industry. This bold move reflects a strategic realignment aimed at unlocking new revenue potential and delivering long-term value to shareholders.