In this report we demonstrate that C/EBPO is a major component of three EFII DNA binding complexes, EFIIa, EFIlb, and EFIIc, which we have previously shown to specifically recognize a C/EBP consensus binding site found in the EFII enhancer sequence from the Rous sarcoma virus long terminal repeat (R. C. Sears and L. Sealy, J. Virol. 66:6338-6352, 1992). Three different forms of C/EBPP, p42, p35, and p20, can bind the EFII DNA sequence as homodimers, and dimerization experiments show that EFila is a homodimer of p20 C/EBPf, EFIIb is primarily composed of a p20/p35 heterodimer with minor amounts of p2O/p42 heterodimer and p35 homodimer, and EFIIc is composed of p20 and/or p35 heterodimerized with a novel 60-kDa protein. p20 C/EBPP is likely equivalent to the internally initiated translation product of C/EBPjI, LIP (liver inhibitor protein), described by P. Descombes and U. Schibler (Cell 67:569-579, 1991). In contrast to the low level of LIP expressed in liver, postulated to occur because of leaky ribosome scanning, we found high levels of expression of p20 C/EBPI in fibroblasts and lymphocytes. In murine fibroblasts, p20 C/EBPP has an extended half-life, four times longer than those of p42 and p35 C/EBPI, which could contribute to its abundant accumulation in this cell type, even though its synthesis by leaky ribosome scanning might be inefficient. Interestingly, overexpression of either the long or short form of C/EBPO represses EFII-mediated transcription, suggesting that another unidentified EFII transactivator(s) exists, which may be dominantly inhibited by C/EBPPI proteins, and/or that transactivation by C/EBPIP proteins requires posttranslational modifications that were lacking in the transient overexpression experiments.Rous sarcoma virus (RSV) contains strong transcriptional enhancing sequences in the U3 region of its long terminal repeat (LTR), flanking either end of the proviral DNA (11,13,34,41,43). Following integration into the host genome, these enhancer sequences become targets for cellular transcription factors which can act synergistically to yield extremely highlevel transcription of the viral genome or cellular genes at or near the integration site (43). The potent transcriptional activity of the RSV enhancer makes it an attractive model system for studying the molecular events involved in the regulation of transcription initiation. Thus, our laboratory has been identifying and characterizing cellular proteins that bind in a sequence-specific manner to the RSV LTR enhancer.The major transcriptional control regions for RSV have been localized by deletion mutagenesis (13,23,34,41,51) and enhancer trap experiments (76) to the 5' end of the LTR at position -229 to position -54 (relative to the transcription start site). We have identified three major protein complexes, designated enhancer factors I, II, and III (EFI, EFII, and EFIII) (5, 68), which bind to different sites in the RSV LTR enhancer (for a diagram, see reference 69). Further analysis of EFI found in 14-day-old chicken embryos (CE) ind...