The company was formed in March 2005 through the merger of video game developers Backbone Entertainment and The Collective.

[5] In May, Foundation 9 acquired an equity stake in Circle of Confusion, a Hollywood management company, to establish a strategic partnership.

[12] In January 2008, Foundation 9 promoted David Mann (previously chief operating officer), Chris Charla and Jack Brummet to president, vice-president of business development, and vice-president of quality assurance, respectively,[13] followed by James North-Hearn, one of Sumo Digital's founders, becoming the chief executive officer of the company in March.

[14] In July 2008, Foundation 9 reinstated Griptonite Games and Fizz Factor, two studios absorbed into Amaze in 2005, under their original brandings.

[15] However, in July 2009, Fizz Factor was closed down entirely, while Amaze was merged into Griptonite and Double Helix suffered staff cuts.