We constructed a molecular clone encoding the N-terminal 379 amino acids of the polyomavirus middlesize tumor antigen, followed by the C-terminal 60 amino acids of the vesicular stomatitis virus glycoprotein G. This hybrid gene contained the coding region for the C-terminal hydrophobic membrane-spanning domain of the G protein in place of the C-terminal hydrophobic domain of the middle-size tumor antigen. The hybrid gene was expressed in COS-1 cells under the control of the simian virus 40 late promoter. The hybrid protein was located in cell membranes and was associated with a tyrosine-specific protein kinase activity, as was the middle-size tumor antigen. Plasmids encoding the hybrid protein failed to transform mouse NIH 3T3 or rat F2408 cells.The polyomavirus genome encodes three early proteins, the small, middle-size (MT), and large T antigens. The coding regions for these three proteins overlap, so that all three share an N-terminal region of 79 amino acids. The small and MT antigens share an additional 112 amino acids not found in the large T antigen. The three T antigens have unique C-terminal regions translated from different reading frames in the viral DNA (29).The three proteins are at different locations in the cell: the large T antigen is found in the nucleus, the small T antigen is found in the cytoplasm, and the MT antigen is found in a cell membrane fraction (14,27). The mechanisms by which the three proteins are directed to different intracellular locations are not understood.The MT antigen is of interest because it is primarily responsible for cell transformation by polyomavirus. Recombinant DNA plasmids encoding only the MT antigen can transform established cell lines (32). Many mutations affecting the MT antigen reduce or abolish cell transformation (1,5,11,15,(17)(18)(19)31). Although the MT antigen alone can transform established cell lines, a portion of the large T antigen is required in addition for transforming primary cells (20).The MT antigen is associated with a protein kinase activity (6,24,28). The protein kinase phosphorylates a tyrosine residue of the MT antigen in immunoprecipitates (6). With few exceptions (18,24), mutations in the MT antigen that affect cell transformation also affect the protein kinase activity, suggesting that the activity may be involved in transformation (1,6,24,28,31). However, polyomavirustransformed cells do not have elevated levels of phosphotyrosine in total cellular protein, as do cells transformed by retroviruses encoding tyrosine-specific protein kinases (26).The MT antigen has an uninterrupted stretch of 22 hydrophobic and uncharged amino acids bounded by positively charged amino acids near its C-terminus (29). The size and location of this C-terminal hydrophobic region are similar to the size and location of regions involved with membrane association in other proteins. In particular, the vesicular * Corresponding author. 282 stomatitis virus (VSV) glycoprotein G has an uninterrupted stretch of 20 hydrophobic and uncharged amino acids which are also...