Propaganda Games was founded in 2005 and under Buena Vista Games was tasked with creating games out of their licensed properties. Their first game, Turok (2008), was a flop in retail sales, while garnering mixed-to-poor reviews, earning a 69 Metacritic score. Their next game, Tron: Evolution was an even worse disaster, earning worse reviews (58 Metacritic) and, more damningly to Viacom, selling only 222,000 units across three platforms (120K on 360, 100K on PS3, and a mere 20K on PC).
That, and the cancellation of Pirates of the Caribbean: Armada of the Damned, basically doomed the developer. While some developers being closed down are a tragedy - yes, we're looking at you Bizarre Creations - this was basically Darwin's Law.