STATs are latent transcription factors that mediate cytokine- and growth fa
ctor-directed transcription. In many human cancers and transformed cell lin
es, Stat3 is persistently activated, and in cell culture, active Stat3 is e
ither required for transformation, enhances transformation, or blocks apopt
osis. We report that substitution of two cysteine residues within the C-ter
minal loop of the SH2 domain of Stat3 produces a molecule that dimerizes sp
ontaneously, binds to DNA, and activates transcription. The Stat3-C molecul
e in immortalized fibroblasts causes cellular transformation scored by colo
ny formation in soft agar and tumor formation in nude mice. Thus, the activ
ated Stat3 molecule by itself can mediate cellular transformation and the e
xperiments focus attention on the importance of constitutive Stat3 activati
on in human tumors.