Twentieth Century Pictures' Joseph Schenck and Darryl F. Zanuck left United Artists over a stock dispute, and began merger talks with the management of financially struggling Fox Film, under president Sidney Kent.[4] Spyros Skouras, then manager of the Fox West Coast Theaters, helped make it happen (and later became president of the new company).[4] Aside from the theater chain and a first-rate studio lot, Zanuck and Schenck felt there was not much else to Fox, which had been reeling since the founder William Fox lost control of the company in 1930. The studio's biggest star, Will Rogers, died in a plane crash weeks after the merger. Its leading female star, Janet Gaynor, was fading in popularity and promising leading men James Dunn and Spencer Tracy had been dropped because of heavy drinking.At first, it was expected that the new company was originally to be called "Fox-20th Century", even though 20th Century was the senior partner in the merger. However, 20th Century brought more to the bargaining table besides Schenck and Zanuck; it was more profitable than Fox and had considerably more talent. The new company, 20th Century-Fox Film Corporation, began trading on May 31, 1935;[5] the hyphen was dropped in 1985. Schenck became Chairman and Chief Executive Officer, while Kent remained as President. Zanuck became Vice President in Charge of Production, replacing Fox's longtime production chief Winfield Sheehan.The company established a special training school. Lynn Bari, Patricia Farr and Anne Nagel were among 14 young women "launched on the trail of film stardom" on August 6, 1935, when they each received a six-month contract with 20th Century Fox after spending 18 months in the school. The contracts included a studio option for renewal for as long as seven years.[6]For many years, 20th Century Fox claimed to have been founded in 1915, the year Fox Film was founded. For instance, it marked 1945 as its 30th anniversary. However, in recent years it has claimed the 1935 merger as its founding, even though most film historians agree it was founded in 1915.[7]The company's films retained the 20th Century Pictures searchlight logo on their opening credits as well as its opening fanfare, but with the name changed to 20th Century-Fox.After the merger was completed, Zanuck quickly signed young actors who would carry Twentieth Century-Fox for years:[8] Tyrone Power, Linda Darnell, Carmen Miranda, Don Ameche, Henry Fonda, Gene Tierney, Sonja Henie, and Betty Grable. Also on the Fox payroll he found two players who he built up into the studio's leading assets, Alice Faye and seven-year-old Shirley Temple. Favoring popular biographies and musicals, Zanuck built Fox back to profitability. Thanks to record attendance during World War II, Fox overtook RKO and Metro-Goldwyn-Mayer (Hollywood's biggest studio) to become the third most profitable film studio. While Zanuck went off for eighteen months' war service, junior partner William Goetz kept profits high by going for light entertainment. The studio's—indeed the industry's—biggest star was creamy blonde Betty Grable.
In 1942, Spyros Skouras succeeded Kent as president of the studio. Together with Zanuck, who returned in 1943, they intended to make Fox's output more serious-minded.[9] During the next few years, with pictures like The Razor's Edge, Wilson, Gentleman's Agreement, The Snake Pit, Boomerang, and Pinky, Zanuck established a reputation for provocative, adult films. Fox also specialized in adaptations of best-selling books such as Ben Ames Williams' Leave Her to Heaven (1945), starring Gene Tierney, which was the highest-grossing Fox film of the 1940s. Fox also produced film versions of Broadway musicals, including the Rodgers and Hammerstein films, beginning with the musical version of State Fair, the only work that the famous team wrote especially for films, in 1945, and continuing years later with Carousel in 1956, The King and I, and The Sound of Music. They also made the 1958 film version of South Pacific. Fox released B pictures made by producers Edward L. Alperson from the mid-1940s and Robert L. Lippert (Regal and later Associated Pictures Inc.) in the mid-1950s.
After the war, and with the advent of television, audiences slowly drifted away. Twentieth Century-Fox held on to its theaters until a court-mandated "divorce"; they were spun off as Fox National Theaters in 1953.[10] That year, with attendance at half the 1946 level, Twentieth Century-Fox gambled on an unproven gimmick. Noting that the two film sensations of 1952 had been Cinerama, which required three projectors to fill a giant curved screen, and "Natural Vision" 3D, which got its effects of depth by requiring the use of polarized glasses, Fox mortgaged its studio to buy rights to a French anamorphic projection system which gave a slight illusion of depth without glasses. President Spyros Skouras struck a deal with the inventor Henri Chrétien, leaving the other film stu
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