Iguana Entertainment

Logo as Iguana Entertainment
Formerly	Iguana Entertainment (1991–1999) Acclaim Studios Austin (1999–2004)
Company type	Subsidiary
Industry	Video games
Founded	1991 inSanta Clara, California, U.S.
Founder	Jeff Spangenberg
Defunct	August 27, 2004; 20 years ago (2004-08-27)
Fate	Dissolved
Headquarters	Austin, Texas , U.S.
Parent	Acclaim Entertainment (1995–2004)

Iguana Entertainment, later known asAcclaim Studios Austin, was an Americanvideo game developer based inAustin, Texas. The company was founded in 1991 byJeff Spangenberg, previouslylead designer for Punk Development, and originally located inSanta Clara, California. Iguana found first success withAero the Acro-Bat, moved to Austin and acquiredOptimus Software (later Iguana UK) in 1993. Iguana was acquired byAcclaim Entertainment in January 1995 and received another sub-studio,Iguana West (formerly Sculptured Software) in October that year. Spangenberg was fired from his position in July 1998 and filed a lawsuit onbreach of contract the following October. Iguana was rebranded Acclaim Studios Austin in May 1999, and the studio was closed down in August 2004, followed by theChapter 7 bankruptcy of its parent in September 2004.

Prior to founding Iguana Entertainment,Jeff Spangenberg, a self-taught programmer who skipped college to pursue a programming career,^[1][2] served aslead designer for Punk Development, the development team of publisher RazorSoft.^[3] In 1991, Spangenberg founded his own company inSanta Clara, California, and hired 20 staff, including friends of his.^[1][2] Initially, the company did not have a name; Jay Moon, who served as development support manager for the company, explained that Spangenberg held two petiguanas, named Spike and Killer, wherefore the team settled on "Iguana Entertainment", with Spike and Killer serving as mascots for the company.^[2] In 1992, Several Punk Development employees joined Iguana when the partnership between Punk and RazorSoft dissolved,^[3] and Iguana hired further staff in 1993 through funding provided by publishersSunsoft andAcclaim Entertainment.^[1]

Because of the high cost of living in theSan Francisco Bay Area for Spangenberg and his employees, the company decided to move their headquarters.^[1][2] Their first choice wasSeattle, Washington, which was also the location ofNintendo of America, but getting to knowTexas' expanding technology industry, several Iguana staff traveled toAustin in May 1993 to investigate the relocation possibilities in the area.^[1][2] The team returned with videotape of the city'sSixth Street entertainment district.^[1][2] All but one employee agreed to move to Austin, and the relocation was completed shortly after.^[1][2] Later that year, Iguana achieved its first success withAero the Acro-Bat and used profits generated from the game's sales to acquireStockton-on-Tees-based^[4] developerOptimus Software, which was rebranded Iguana UK.^[5]

On December 21, 1994, Acclaim announced that they had agreed to acquire Iguana.^[6] The deal was completed on January 4, 1995,^[7] withUS$5 million paid in cash and additional, undisclosed payments made in stock.^[8] In October 1995, Acclaim additionally acquiredSalt Lake City-basedSculptured Software for$30 million in stock,^[5] which became part of Iguana under the name Iguana West in December 1997.^[9][10]

Spangenberg was fired from Iguana on July 8, 1998,^[2] and several undisclosed management changes at the studio were announced by Acclaim later the same month.^[11] Additionally, the company was placed under Acclaim Studios, a new, decentralized management for Acclaim's development studios led by former Iguana employee Darrin Stubbington.^[11] In October that year, Spangenberg filed a lawsuit against Acclaim, Acclaim co-founderGreg Fischbach, and Iguana forbreach of contract andfraud.^[2][12] The suit, handled as "Jeffery Spangenberg vs. Acclaim Entertainment, Inc., Iguana Entertainment, Inc., and Gregory Fischbach", alleged that Fischbach urged Spangenberg to purchase Acclaim shares worth$25,000 in February 1998, and convinced him to keep them just shortly before Spangenberg was relieved of his position, resulting in his loss ofstock options.^[2][12] Spangenberg founded a new development company,Retro Studios, on October 1, 1999.^[13]

In May 1999, Acclaim Studios announced that they would unify all development studios owned by the company under the same branding; as part of this move, Iguana, Iguana UK and Iguana West became Acclaim Studios Austin, Acclaim Studios Teesside and Acclaim Studios Salt Lake City, respectively.^[14] When Acclaim's agreement with GMAC Commercial Finance, their primary lender, expired on August 20, 2004,^[15] the company closed all of its facilities, including Acclaim Studios Austin, on August 27,^[16] of which the Austin and New York studios saw all employees let go.^[17] Acclaim itself filed forChapter 7 bankruptcy with theUnited States bankruptcy court inCentral Islip, New York on September 1.^[18][19]

The "Iguana Entertainment" name was reused by brothers Jason and Darren Falcus, who had founded Optimus Software in February 1988,^[4] when they created a studio of the same name in 2009.^[20] That studio was acquired by and incorporated intoTeam17 in December 2011.^[5][20]

• Lizard mascots
• Video game development companies
• Video game companies established in 1991
• Video game companies disestablished in 2004
• Defunct video game companies of the United States
• Video game companies based in Texas
• Defunct companies based in Texas
• Companies based in Austin, Texas
• 1991 establishments in California
• 2004 disestablishments in California

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