In the summer of 1929 William Fox attempted one of the most audacious moves of the studio era: with the assent of Nicholas Schenck he quietly bought the Loew family's holdings in Metro-Goldwyn-Mayer, a maneuver that blindsided MGM’s studio chiefs Louis B. Mayer and Irving Thalberg. Mayer, who wielded enormous political clout in New York and Washington, retaliated not on the lot but in the halls of power — persuading the Justice Department to bring an antitrust suit against Fox. The timing could not have been worse. In July 1929 Fox was severely injured in an automobile accident; while he was recovering the stock-market crash of October 1929 annihilated his personal fortune. The combined effects of Mayer’s political assault, Fox’s incapacity after the accident, and the catastrophic market collapse meant the Loews deal collapsed and left Fox vulnerable to a hostile takeover in 1930. Within five years the company that bore his name would be merged into Twentieth Century-Fox in 1935, with Fox himself excluded from ownership or management — a textbook example of how studio-era power politics and backroom financial warfare could displace an industry founder.
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