The steroidogenic activity of the bovine placenta is not modulated by cyclic nucleotide-mediated mechanisms. However, both translocation of intracellular Ca2+ and influx of extracellular Ca2+ activate the side-chain cleavage enzyme and 3 beta-hydroxysteroid dehydrogenase. Protein kinase C activation in concert with Ca2+ mobilization also activates the side-chain cleavage enzyme. Cholesterol availability is a rate-limiting factor. Using polyclonal antibodies against bovine adrenal cytochrome P-450scc, the presence of P-450scc was demonstrated in both placental and luteal tissues. The cytochrome P-450scc was then localized, using gold-staining electron microscopy, in the mononuclear cells but not the binuclear cells of the placentome. The results suggest that cholesterol is metabolized by the mononuclear cell to pregnenolone, where it is further metabolized to progesterone by the mononuclear and binuclear cells.