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Lance Priebe, as well as co-workers Lane Merrifield and Dave Krysko, started to formulate the Club Penguin concept when the trio were unsuccessful in finding "something that had some social components but was safe, and not just marketed as safe" for their own children.The developers used the previous project Penguin Chat 2 – which was still online – as a jumping off point in the design process, while incorporating concepts and ideas from Experimental Penguins.
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After beta-testing, Club Penguin was made available to the general public on October 24, 2005, While free memberships were available, revenue was predominantly raised through paid memberships, which allowed players to access a range of additional features, such as the ability to purchase virtual clothing, furniture, and in-game pets called "puffles" for their penguins through the usage of in-game currency.
The success of Club Penguin led to New Horizon being purchased by The Walt Disney Company in August 2007 for the sum of 350 million dollars, with an additional 350 million dollars in bonuses should specific targets be met by 2009.
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