Most Academy members believed is was a better movie and voted for it.
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The beloved film version of 'The Wizard of Oz' came out first. Its release date was August 12, 1939. The movie 'Gone with the Wind' came out on December 15, 1939.
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The Wizard of Oz. It premiered 12 August 1939 and went into wide release on 25 August 1939. Gone with the Wind premiered 15 December 1939 and did not go into wide release until 17 January 1941. This information is courtesy of the Internet Movie Database.
"Gone With the Wind" won the 1939 Best Picture award over "The Wizard of Oz." Both films were credited to director Victor Fleming, who was pulled off "Oz" to take over "GWTW."