The transcriptional coactivators CBP and P/CAF are required for activa
tion of transcription from the IFN beta enhanceosome. We show that CBP
and P/CAF acetylate HMG I(Y), the essential architectural component r
equired for enhanceosome assembly, at distinct lysine residues, causin
g distinct effects on transcription. Thus, in the context of the enhan
ceosome, acetylation of HMG I by CBP, but not by P/CAF, leads to enhan
ceosome destabilization and disassembly. We demonstrate that acetylati
on of HMG I(Y) by CBP is essential for turning off IFN beta gene expre
ssion. Finally, we show that the acetyltransferase activities of CBP a
nd P/CAF modulate both the strength of the transcriptional response an
d the kinetics of virus-dependent activation of the IFN beta gene.