On October 23, 1928, RCA announced it was merging Film Booking Offices and Keith-Albee-Orpheum to form the new motion picture business Radio-Keith-Orpheum (RKO), with Sarnoff as chairman. Kennedy, who retained Pathé, was paid $150,000 for arranging the merger on top of the millions of dollars in profit he made from selling off his stock. Joseph I. Schnitzer, ranking FBO vice-president, was elevated to president of the new company's production arm, replacing Kennedy. William LeBaron, the last FBO production chief, retained his position after the merger, but the new studio, dedicated to full sound production, cut ties with most of FBO's roster of silent-screen performers. Movies that Film Booking Offices had either produced or arranged to distribute were released under the FBO banner through the end of 1929. The last official FBO production to reach American theaters was "Pals of the Prairie", directed by Louis King and starring Buzz Barton and Frank Rice, released July 1, 1929.