Why did Liberty Films sell its assets to Paramount Pictures?

Liberty Films was founded by William Wyler, Frank Capra, George Stevens, and Samuel Briskin as an independent production company. The partners ultimately sold the company's assets to Paramount Pictures in 1948 because it became clear that the venture was not going to succeed.12

Financial difficulties contributed significantly to this outcome; for example, the company's first release, It’s a Wonderful Life (1946), was the most expensive film of Capra’s career and left Liberty approximately $500,000 in the red. Following the sale, the partners received stock in the studio, and Wyler committed to directing and producing five films for Paramount.21