Ilion Animation Studios is a Spanish animation studio based in Madrid, Spain. The studio was established by the founders of Pyro Studios, a video game development studio, to create computer-animated movies for theatrical release. Ilion produced the CGI-animated film, "Planet 51".
Ilion Animation Studios was founded in Madrid
The context only states that the studio is based in Madrid. It doesn't state it was founded there. It may have been founded elsewhere and then moved to Madrid. The system likely assumed that because the studio is based in Madrid means it was founded there 
( z1 found :ARG1 ( z2 company :name ( z3 name :op "Ilion" :op "Animation" :op "Studios" ) ) :location ( z4 city :name ( z5 name :op "Madrid" ) ) )