If I knew, I would tell you. I found the toy at a thrift store, cut the arms off and tossed it in the trash after.
Basically, it had a Spider-man and Doc Ock (not articulated) glued to a base, facing each other, that spun around in circles. The only moving parts were the spinning base and the bendy octopus arms. It was a pretty dumb toy, and I haven't a clue where it came from, who made it or when. As soon as I saw it, I knew I had found my octo-arms. If anyone finds out or already knows what it was, let us all know. I personally wouldn't mind tracking down another so I could make the arms by themselves, without the maniacal doctor.
The figure itself is the Showdown Octavius, naturally.
Here is a picture of the figure.
Not sure were he came from, as I also got him from a thrift store. He has no markings as to who made him.