The exterior of the original Warner Brothers West Coast Studio in Hollywood, California. Just before the stock market crashed in 1929, sale talks went far enough that insiders were getting ready to announce what was going to be called the "Paramount-Warner Bros. Corporation." Hulton Archive/Getty Images Share on Facebook Share on X Google Preferred Share to Flipboard Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Send an Email Print the Article Post a Comment "Prosperity is back," beamed Paramount chairman Adolph Zukor in 1922, noting that the previous year nearly dealt a "mortal blow" to motion pictures. The industry had weathered a storm of growing public suspicion over sordid details coming from the entertainment industry in the wake of producer William Desmond Taylor's murder and the rape/murder trials and acquittal of comedian Fatty Arbuckle. To ensure future confidence in motion pictures, Zukor helped bring in a self-censoring body to keep the concerned government and public happy. Paramount was coming out of a period of growth. Related Stories TV Rob Reiner in 'All in the Family': A Boundary-Pushing Legacy News The Forgotten Past of Hollywood's Anti-Nazi Committee With David Ellison ramping up what may be an ugly battle to force a sale of Warner Bros. to Paramount, the move mirrors Hollywood a century ago when it was also in a period of change amid technological innovation. In the 1920s, Paramount pushed unsolicited offers for the newly incorporated Warner Bros. while Warners pushed back. Zukor streamlined the star system, brought in Postmaster General Will Hays to head up the self-censorship office, and set the bar for rapid expansion in Hollywood. On paper, Paramount had every advantage as Warner Bros. carried debt to purchase studio space on Sunset Boulevard and was arguably vulnerable to a takeover. The Warner brothers had other ideas. Harry Warner, the eldest brother and studio president, was not to be underestimated or bullied. The Warner Brothers. Harry Rapf, Sam Warner, Harry Warner, Jack Warner, Albert Warner, ca. 1927. Everett Zukor was king of mergers of early Hollywood. His history to that point included combining Famous Players Film Company with Jesse Lasky to create the Famous Players-Lasky Corporation. The Paramount name came from W.W. Hodkinson who created a film distributor called Paramount Pictures Corporation in 1911. Hodkinson was strong-armed into selling stock in 1914 and unseated by Zukor in what was, perhaps, Paramount's first involvement in a hostile takeover. In the process, Zukor set the movie business on a path towards vertical integration - owning the means of production, distribution and exhibition. With the freshly acquired Paramount distribution wing, Zukor increased the studio's output for 1915, all while flying in the face of the newly minted Clayton Act of 1914 that adding attention to maneuvers that restrict competition and harm consumers. Zukor forced Paramount theaters to accept film packages - a mix of desirable and less desirable films - to ensure all product made it through the exhibition network. The practice, called block booking, was the prevailing distribution method until it was rendered illegal in 1948. About a year after the Warners incorporated their company in 1923, acquisition rumors circled. Harry Warner released a statement to the press assuring their stakeholders and investors that having responsibilities split between the four brothers was "enough of a consolidation" and that Warner Bros. will "remain independent." Like Zukor, Harry was interested in expansion. Sam Warner was eyeing sound technology and Harry was focused on expanding their theater network. "It is not our intention to own and control a large number of theaters," Harry told the Exhibitors Herald in 1925. The goal was to place new theaters in key areas controlled by a small number of companies in hopes of adding competition to the market and more choices for filmgoers. "We will fight the monopoly stuff wherever we find it, and we have the money and pictures to do it with," boasted the Warner president. The same year found Zukor eager to expand his own theater presence. Zukor's passion for growth had him referred to as a "bandit" during antitrust discussions in Washington DC. The Paramount executive also became president of the American Motion Picture Association (precursor to the MPA) in 1925, beating out the likes of Marcus Loew, Jesse Lasky, William Fox, Will Hays, Sam Rothafel, Sam Katz, Carl Laemmle, Joseph Schenck, and other Hollywood heavies. By the end of the year, Zukor helped broker a merger between his Famous Players-Lasky theater chain and the houses of Balaban & Katz to become the Publix Theater Corporation. Together, the entity held a little over 500 theaters, but that number would soon grow to well over 1,000 screens. Meanwhile, thanks to the insight and drive of Sam Warner, his brother Harry invest