Pas oncogene-transformed PA-1 human teratocarcinoma cells have abundant AP-
2 mRNA but, paradoxically, little AP-2 transcriptional activity. We have pr
eviously shown that overexpression of AP-2 in nontumorigenic variants of PA
-1 cells results in inhibition of AP-2 activity and induction of tumorigeni
city similar to that caused by Pas transformation of PA-1 cells. Evidence i
ndicated the existence of a novel mechanism of inhibition of AP-2 activity
involving sequestering of transcriptional coactivators. In this study, we f
ound that PC4 is a positive coactivator of AP-2 and can restore AP-2 activi
ty in Pas-transformed PA-1 cells. Relative to vector-transfected Pas cell l
ines, Pas cell lines stably transfected with and expressing the PC4 cDNA ha
ve a diminished growth rate and exhibit a loss of anchorage-independent gro
wth, and they are unable to induce the formation of tumors in nude mice. Th
ese data suggest that a transcriptional coactivator, like a tumor suppresso
r, can have a growth-suppressive effect on cells. Our experiments are the f
irst to show that ras oncogenes and oncogenic transcription factors can ind
uce transformation through effects on the transcription machinery rather th
an through specific programs of gene expression.