The cooperation of Ras -extracellular signal-regulated kinase/mitogen-activated protein kinase and transforming growth factor (TGF)-b signaling provokes an epithelial to mesenchymal transition (EMT) of differentiated p19 ARF null hepatocytes, which is accompanied by a shift in malignancy and gain of metastatic properties. Upon EMT, TGF-b induces the secretion and autocrine regulation of platelet-derived growth factor (PDGF) by upregulation of PDGF-A and both PDGF receptors. Here, we demonstrate by loss-of-function analyses that PDGF provides adhesive and migratory properties in vitro as well as proliferative stimuli during tumor formation. PDGF signaling resulted in the activation of phosphatidylinositol-3 kinase, and furthermore associated with nuclear b-catenin accumulation upon EMT. Hepatocytes expressing constitutively active b-catenin or its negative regulator Axin were employed to study the impact of nuclear b-catenin. Unexpectedly, active b-catenin failed to accelerate proliferation during tumor formation, but in contrast, correlated with growth arrest. Nuclear localization of b-catenin was accompanied by strong expression of the Cdk inhibitor p16INK4A and the concomitant induction of the b-catenin target genes cyclin D1 and c-myc. In addition, active b-catenin revealed protection of malignant hepatocytes against anoikis, which provides a prerequisite for the dissemination of carcinoma. From these data, we conclude that TGF-b acts tumor progressive by induction of PDGF signaling and subsequent activation of bcatenin, which endows a subpopulation of neoplastic hepatocytes with features of cancer stem cells.