When George K. Spoor and Gilbert M. Anderson met, they were both veterans of the movie business.  Spoor was a manufacturer of film projectors, the Kinodrome, and ran a film distribution business, National Movie Rental Co. Like other men offering side services, he realized he could make more money, and have a more consistent income if he produced his own movies.

Anderson was a successful actor and burgeoning director.

His office was located at 62 N. Clark, which became the partnership's first studio.