In 1981, United Artists was sold to Metro-Goldwyn-Mayer, commonly abbreviated MGM. The transaction brought the two major Hollywood companies together under the ownership of investor Kirk Kerkorian, who already controlled MGM through his company Tracinda.
United Artists had been owned by Transamerica Corporation since 1967. Transamerica became increasingly unhappy with the studio after the expensive production and commercial failure of Heaven’s Gate, Michael Cimino’s 1980 western. The film’s problems damaged United Artists’ reputation and helped persuade Transamerica to leave the movie business.
After the sale, United Artists operated alongside MGM and the combined enterprise became known as MGM/UA. The deal did not erase the United Artists name immediately; UA continued as a production and distribution label. It also connected two enormous film libraries and franchises, including United Artists properties such as the James Bond, Rocky, and Pink Panther series. A later ownership change in the 1980s is sometimes confused with this transaction, but the 1981 buyer was MGM.