In 1932, Korda formed the now famous London Films production company. It was with this company that Merle began to build an audience.
Suddenly, at age twenty-one, she was rushed into surgery in great pain. She had tumors on her fallopian tubes; they had to be removed. It would be years before she realized she couldn't bear children.
After her recovery, Korda gave Merle a three minute part in his big production The Private Life of Henry VIII. In it she played Anna Boleyn at the scene of her beheading. Merle was annoyed that the part was so small, but the picture was prestigious and she received significant attention for her performance.
She then had a bigger, though not very significant, part in The Private Life of Don Juan(1934). It was her friend Douglas Fairbanks Sr.'s last picture. She prepared extensively for the part and already showed great control as an actresses.
In 1934, she earned international attention starring opposite Leslie Howard in The Scarlet Pimpernel(1934). She also had an intense affair with the married Howard offscreen. Though their relationship had lasted longer than most of his dalliances, he eventually left her to return to his family.
By 1935, Korda knew that Merle had a worthy, but limited talent. He split her contract with Hollywood producer Samuel Goldwyn, hoping that his lavish productions would show her to the best advantage. Now Merle was to become as famous in the United States as she was in England.
Goldwyn liberated Merle from the exotic oriental temptress roles that Korda had given her. She was delighted when he cast her in The Dark Angel(1935), a remake of one of her favorite silent movies. Though the movie wasn't memorable, her performance earned her an Academy Award nomination for best actress.
Merle bought a Santa Monica beach house and started to enjoy life in Hollywood. She befriended her neighbor Norma Shearer and began a spirited affair with young actor David Niven. She also became a frequent attendee at industry parties.
In 1936, Goldwyn cast Merle in These Three(1936), a version of Lillian Hellman's play The Children's Hour. The shoot was extremely rough on Merle. Not only was her costar Miriam Hopkins difficult on the set, but director William Wyler was notoriously demanding. However, Wyler coaxed Merle into one of the best performances of her career. The movie was a critical and popular success and Merle was firmly established as a star.
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