RKO has long been renowned for its cycle of musicals starring Fred Astaire and Ginger Rogers in the mid- to late 1930s.
RKO spent heavily on the lavish Rio Rita, including a number of Technicolor sequences.
Opening in September to rave reviews, it was named one of the ten best pictures of the year by Film Daily.
Kennedy, who withdrew from his executive positions in the merged companies, kept Pathé separate from RKO and under his personal control.
Looking to get out of the film business the following year, Kennedy arranged in late 1930 for RKO to purchase Pathé from him.
In 1989, this business with its few remaining assets, the trademarks and remake rights to many classic RKO films, was sold to new owners, who now operate the small independent company RKO Pictures LLC. released The Jazz Singer, the first feature-length talking picture.