Shut out of the profitable sound-film conversion business driven by the success of Warner Bros.' October 1927 release The Jazz Singer, RCA bought its way into the motion picture industry to gain an outlet for the optical sound-on-film system, Photophone, recently developed by General Electric, RCA's parent company. All of the major studios and their theater divisions were in the process of signing with ERPI, a subsidiary of AT&T's Western Electric division, to handle conversion. Hoping to join in the anticipated boom in sound movies, David Sarnoff, general manager of RCA, approached Joseph Kennedy in late 1927 about using the Photophone system for FBO pictures. Negotiations resulted in General Electric acquiring a substantial interest in the studio, followed by Sarnoff and Kennedy arrangin