United Artists

Douglas Fairbanks

D. W. Griffith

**United Artists** (**UA**) is an American film and television entertainment studio. Founded in 1919 by D. W. Griffith, Charlie Chaplin, Mary Pickford, and Douglas Fairbanks, the studio was premised on allowing actors to control their own interests, rather than being dependent upon commercial studios.

UA was repeatedly bought, sold, and restructured over the ensuing century. The current United Artists company exists as a successor to the original; as a distributor of films across MGM and third-party titles and as a provider of digital content, in addition to handling most of its post-1952 in-house library and other content it has since acquired. Metro-Goldwyn-Mayer acquired the studio in 1981 for a reported $350 million ($1 billion today).

## History

### **Early Years:**

Pickford, Chaplin, Fairbanks, and Griffith incorporated UA as a joint venture on February 5, 1919. Each held a 25 percent stake in the preferred shares and a 20 percent stake in the common shares of the joint venture, with the remaining 20 percent of common shares held by lawyer and advisor William Gibbs McAdoo. The idea for the venture originated with Fairbanks, Chaplin, Pickford and cowboy star William S. Hart a year earlier. Already Hollywood veterans, the four stars talked of forming their own company to better control their own work.

They were spurred on by established Hollywood producers and distributors who were tightening their control over actor salaries and creative decisions, a process that evolved into the studio system. With the addition of Griffith, planning began, but Hart bowed out before anything was formalized. When he heard about their scheme, Richard A. Rowland, head of Metro Pictures, apparently said, "The inmates are taking over the asylum." The four partners, with advice from McAdoo (son-in-law and former Treasury Secretary of then-President Woodrow Wilson), formed their distribution company. Hiram Abrams was its first managing director, and the company established its headquarters at 729 Seventh Avenue in New York City.

The original terms called for each star to produce five pictures a year. By the time the company was operational in 1921, feature films were becoming more expensive and polished, and running times had settled at around ninety minutes (eight reels). The original goal was thus abandoned.

In the 1940s, United Artists was losing money because of poorly received pictures. Cinema attendance continued to decline as television became more popular. The company sold its Mexican releasing division to Crédito Cinematográfico Mexicano, a local company.

### **Public Company:**

United Artists went public in 1957 with a $17 million stock and debenture offering. The company was averaging 50 films a year. In 1958, UA acquired Ilya Lopert's Lopert Pictures Corporation, which released foreign films that attracted criticism or had censorship problems.

In 1957, UA created United Artists Records Corporation and United Artists Music Corporation after an unsuccessful attempt to buy a record company. In 1968, UA Records merged with Liberty Records, along with its many subsidiary labels such as Imperial Records and Dolton Records. In 1972, the group was consolidated into one entity as United Artists Records and in 1979, EMIacquired the division which included Blue Note Records.

In 1959, after failing to sell several pilots, United Artists offered its first ever television series, The Troubleshooters, and later released its first sitcom, The Dennis O'Keefe Show.

In the 1960s, mainstream studios fell into decline and some were acquired or diversified. UA prospered while winning 11 Academy Awards, including five for best picture, adding relationships with the Mirisch brothers, Billy Wilder, Joseph E. Levine and others. In 1961, United Artists released West Side Story, which won a record ten Academy Awards (including Best Picture).

In 1960, UA purchased Ziv Television Programs. UA's television division was responsible for shows such as Gilligan's Island, The Fugitive, Outer Limits, and The Patty Duke Show. The television unit had begun to build up a profitable rental library, including Associated Artists Productions, owners of Warner Bros. pre-1950 features, shorts and cartoons and 231 Popeye cartoon shorts purchased from Paramount Pictures in 1958, becoming United Artists Associated, its distribution division.

In 1963, UA released two Stanley Kramer films, It's A Mad, Mad, Mad, Mad World and A Child Is Waiting. In 1964, UA introduced U.S. film audiences to the Beatles by releasing A Hard Day's Night and Help!

At the same time, it backed two expatriate North Americans in Britain, who had acquired screen rights to Ian Fleming's James Bond novels. For $1 million, UA backed Harry Saltzman and Albert Broccoli's Dr. No in 1963 and launched the James Bond franchise. The franchise outlived UA's time as a major studio, continuing half a century later. Other successful projects backed in this period included the Pink Panther series, which began in 1964, and Spaghetti Westerns, which made a star of Clint Eastwood.

### **MGM:**

The merged companies became MGM/UA Entertainment Company and in 1982 began launching new subsidiaries: the MGM/UA Home Entertainment Group, MGM/UA Classics and MGM/UA Television Group. Kerkorian also bid for the remaining, outstanding public stock, but dropped his bid, facing lawsuits and vocal opposition.

After the purchase, David Begelman's duties were transferred from MGM to MGM/UA. Under Begelman, MGM/UA produced unsuccessful films and he was fired in July 1982. Of the 11 films he put into production, by the time of his termination only Poltergeist proved to be a hit.

As part of the consolidation, in 1983, MGM closed and marketed United Artists' long time headquarters at 729 Seventh Avenue in New York City.

WarGames and Octopussy made substantial profits for the new MGM/UA in 1983, but were not sufficient for Kerkorian. A 1985-restructuring led to independent MGM and UA production units with the combined studio leaders each placed in charge of a single unit. Speculation from analysts was that one of the studios, most likely UA, would be sold to fund the other's (MGM) stock buy-back to take that studio private. However, soon afterwards, one unit's chief was fired and the remaining executive, Alan Ladd, Jr., took charge of both.

On August 7, 1985, Ted Turner announced that his Turner Broadcasting System would buy MGM/UA. As film licensing to television became more complicated, Turner saw the value of acquiring MGM's film library for his superstation WTBS. Under the terms of the deal, Turner would immediately sell United Artists back to Kerkorian.

In anticipation, Kerkorian installed film producer Jerry Weintraub as the chairman and chief executive of United Artists Corporation in November 1985. Former American Broadcasting Company executive Anthony Thomopoulos was recruited as UA's president Weintraub's tenure at UA was brief; he left the studio in April 1986, replaced by former Lorimar executive Lee Rich.

On March 25, 1986, Turner finalized his acquisition of MGM/UA in a cash-stock deal for $1.5 billion and renamed it MGM Entertainment Co. Kerkorian then repurchased most of United Artists' assets for roughly $480 million. As a result of this transaction, the original United Artists ceased to exist. Kerkorian, for all intents and purposes, created an entirely new company implementing the inherited assets; thus, the present day UA is not the legal successor to the original incarnation, though it shares similar assets.