The mRNAs for myogenic functions are coordinately transcribed with polyomavirus (Py) early mRNA during in vitro differentiation of mouse C2 myoblast cells. Sequence analysis shows that the A domain of the Py enhancer includes an ElA-like consensus sequence that is also found in the 5' upstream region of two genes expressed during myoblast differentiation: a-actin and myosin light chain. Therefore, the coordinate expression of such genes with Py early mRNA may be activated by a common cellular regulatory factor. In the present work, we report that C2 cells surviving Py infection are unable to differentiate and do not express a-actin and myosin light-chain mRNAs. Hybrids between such Py-resistant myoblast cells and the parental cells exhibited dominance of the permissibility to Py growth and of the expression of myogenic mRNAs. In C2 cells transiently transfected with a chimeric plasmid (pSVPy12CAT) harboring the bacterial chloramphenicol acetyltransferase (CAT) gene driven by the Py enhancer-promoter region, the CAT gene was expressed irrespective of their stage of differentiation. Moreover, undifferentiated stably transfected cells expressing the CAT gene restricted viral growth. Py-resistant C2 myoblasts transiently transfected with pSVPyl2CAT also expressed the CAT gene driven by the Py enhancer. This contradictory finding is similar to results previously obtained by other investigators with cloned genes specific for myogenic functions, and it may be explained by a structural difference between the pSVPy12CAT and the Py genomic organizations in which the viral enhancer operates.The interaction of oncogenic viruses with differentiating cells has been investigated in different tissue culture systems. The replication of polyomavirus (Py) in murine cells provides valuable insights into gene regulation during the differentiation process, because the expression of viral functions is related to changes in the Py regulatory region (Py-RR) (for a recent review, see reference 1; M.-H. Kryszke and M. Yaniv, Crit. Rev. Biochem., in press). One of the most interesting systems is that of Py expression during differentiation of muscle cells. Fogel and Defendi (11) first reported that explanted myoblasts are susceptible to Py infection. Recently, by using established cell lines, our knowledge of the myogenic process has greatly developed (2,24,26,33). The regulation of myogenic functions occurs at many different stages and levels from transcription to posttranslational control (9). We have previously shown (10) that infecting or transfected Py genomes are unable to express their early functions and replicate in undifferentiated C2 myoblasts, whereas they replicate during myogenesis. Preliminary experiments indicated that early Py mRNA is transcribed in differentiating myoblasts concomitantly with the expression of typical myogenic functions, such as transcription of ox-actin and myosin light-chain (MLC1) mRNA. Sequence analysis of the 5' regulatory regions of several genes coding for myogenic functions (5) reveals the presence...