Telstar Electronic Studios began operations in 1993 in Surrey, England. Initially they compiled 'two for the price of one' packs of other games publishers before getting the UK publishing rights to 7th Guest and Dune. After this they set up their own development studios, with the aim to, "develop innovative interactive titles, with the emphasis placed on entertainment." Many of their budget-priced games and game packs were published under their Telstar Fun and Games label.
Unfortunately none of their games sold particularly well, and by the start of 1999 Telstar had debts of over £10million. In May the company made a 'publishing deal' with Take 2 Interactive, which essentially gave Take 2 complete control over Telstar.