The company began with the taking over of Nikkatsu's Uzumasa Movie Studio in Kyoto, Tamagawa Movie Studio (presently Kadokawa Daiei Film Studio) in Chofu, Shinko Cinema's Kyoto Uzumasa Movie Studio (presently Toei Kyoto Movie Studios), Oizumi Movie Studio (closed shortly afterwards, currently Toei Tokyo Movie Studio) and Daito Eiga Studio in Sugamo (closed shortly afterwards), along with the production staff and actors of the three companies.
日活の京都にあった太秦撮影所、調布にあった多摩川撮影所（現・角川大映撮影所）と新興キネマの京都太秦撮影所（現・東映京都撮影所）、大泉撮影所（間もなく閉鎖。現・東映東京撮影所）、巣鴨の大都映画撮影所（間もなく閉鎖）、ならびに3社のスタッフ・俳優を引き継ぎ、映画制作を開始。