The company was founded in September 2005 by Brunel University students Dave Bailey and Paul Croft, releasing their first game, Snowman Salvage in December that year.

Mediatonic was founded in September 2005 by friends Dave Bailey and Paul Croft, both aged 21 at the time, during their final year at Brunel University.

[3] With an office near the campus, they set up the company as a work-for-hire studio to create Flash games and sometimes skipped lectures to accept calls from clients.

[2][3][4] Mediatonic was profitable enough in its first year that, following Bailey and Croft's graduation, the studio moved to a former government building in Westminster in February 2006 and hired ten employees.

[1] Mediatonic received funding from entrepreneurs Kelly Sumner, Ian Livingstone and Geoff Heath in April 2010, and from Frog Capital in January 2012.

[13] Also in early 2020, Mediatonic established its headquarters in an office above London Victoria station, although it went largely unused due to the COVID-19 pandemic causing the company to make employees work from home.