SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                -----------------

                                    Form 8-K

                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


         Date of Report (Date of earliest event reported): June 15, 1998


                           IWERKS ENTERTAINMENT, INC.
               (Exact Name of Registrant as Specified in Charter)


         Delaware                    0-22558                  95-4439361
 (State or Other Jurisdiction      (Commission              (IRS Employer
    of Incorporation)               File Number)           Identification No.)


                            4540 West Valerio Street
                         Burbank, California 91505-1045
                    (Address of Principal Executive Offices)

                                 (818) 841-7766
                         (Registrant's Telephone Number)




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ITEM 5.  OTHER EVENTS

         Reference is made to the press  release of  Registrant,  issued on June
15, 1998,  which contains  information  meeting the requirements of this Item 5,
and which is incorporated herein by this reference. A copy of this press release
is attached to this Form 8-K as Exhibit 99.1.


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                                                    SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


June 16, 1998                                IWERKS ENTERTAINMENT, INC.



                                             By: /s/ Bruce Hinckley
                                                 ----------------------
                                                  Bruce Hinckley
                                                  Chief Financial Officer


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                                  EXHIBIT INDEX

Exhibits                                                            Page Number
- - --------                                                            -----------

99.1              Press Release dated June 15, 1998.


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BURBANK,  Calif.--(ENTERTAINMENT WIRE)--June 15, 1998--Iwerks Entertainment Inc.
(Nasdaq:IWRK) announced that it has engaged the international investment banking
firm Schroders to assist the company in developing its strategic growth plan.

Schroders  will  support  Iwerks in various  investment  banking  and  corporate
finance  activities  designed  to  further  Iwerks'  long-term  success  in  the
large-format and ride simulation industries.

Among other things,  Schroders is engaged to assist Iwerks in seeking  long-term
strategic partners; identifying financing opportunities for core activities such
as film  production,  and for possible  joint  ventures;  and  accelerating  the
company's aggressive expansion initiatives in the large-format arena.

Charles Goldwater,  chairman of the board and chief executive officer of Iwerks,
said:  "Schroders  provides us with a promising  added  dimension to our already
invigorated  efforts.   Bringing  to  Iwerks  their  renowned  capabilities  and
relationships  throughout the world is another key step in our ongoing  strategy
to build our business in a manner that increases shareholder value."

Schroders is a leading  international  investment and merchant  banking and fund
management  group.  The  group's  activities  cover a wide  range  of  financial
services,   including  corporate  finance,  capital  markets,  project  finance,
securities,   financial  markets,  structured  products,  banking  and  leasing,
investment  management,  property  asset  management,  and  venture  capital and
management buy outs.

Iwerks Entertainment is one of the world's leading providers and distributors of
film-based  attractions such as 2-D and 3-D ride  simulation,  2-D and 3-D giant
screen theaters, 360-degree video dance clubs and other immersive attractions.

Serving prestigious  entertainment,  information and marketing  providers,  more
than  250  Iwerks   attractions  can  be  found   worldwide  at   location-based
entertainment centers,  amusement parks, family entertainment centers,  shopping
centers, casinos, resorts,  nightclubs,  restaurants,  museums, fairs, festivals
and more. Visit Iwerks Entertainment on the Internet at "http://www.iwerks.com."

Contact:
         Iwerks Entertainment Inc., Burbank
         Krista Grossman, 310/442-2516



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