In 1912, Powers had led his own filmmaking company, part of multiple mergers that created
Universal Pictures. Between the 1922 reorganization of
Film Booking Office of America and October 1923, Powers, as one of the company's new American investors, was effectively in command. :"The 15 Sep 1923
Exhibitors Trade Review reported that the filming of
The Mail Man at the Pat Powers Studio in Hollywood, CA, was complete, and director
Emory Johnson was personally supervising the cutting of the picture. The studio was located at the northeast corner of Gower Street and
Melrose Avenue" Powers apparently(?) changed the name of Robertson-Cole/FBO to the Powers Studio for a brief period, though there is no record of the company ever having produced or released a film under that banner. In 1925, he moved briefly to take over at the
distribution outfit
Associated Exhibitors. In 1928,
Joseph P. Kennedy and
RCA head
David Sarnoff merged FBO and the
Keith-Albee-Orpheum theater circuit to form
RKO Radio Pictures. Powers invested in what remained of the
sound film company
DeForest Phonofilm in the spring of 1927.
Lee De Forest was on the verge of bankruptcy, due to legal fees from a series of lawsuits against former associates
Theodore Case and
Freeman Harrison Owens. DeForest was by that time selling cut-price sound equipment to second-run movie theaters wanting to convert to sound on the cheap. In June 1927, Powers made an unsuccessful takeover bid for De Forest's company. In the aftermath of the failed takeover, Powers hired a former DeForest technician,
William Garity, to produce a cloned version of the Phonofilm
sound recording system, which became
Powers Cinephone. By this time, De Forest was in too weak a financial position to mount a legal challenge against Powers for patent infringement. ==Walt Disney and Ub Iwerks==