In 1942, the Nazi policy of forced coordination (Gleichschaltung) unified Universum Film AG and its competitors (Tobis, Terra, Bavaria Film and Wien-Film) together with several foreign film production companies into one corporation (Ufa-Film Gbmh) with its headquarters in Berlin.  

Nazi Propaganda Minister Joseph Goebbels ordered the production of the 1943 technicolor comedic fantasy Münchhausen to celebrate the 25th anniversary of the UFA film studio which released it. Münchhausen, a “peoples film” (Volksfilm) designed to entertain the masses and distract them from the war, utilized many colorful Hollywood-style visual techniques.