CBS filed a countersuit on Tuesday against Sony, accusing the company of concocting a false pretext in order to back out of its decades-old distribution deal for “Wheel of Fortune” and “Jeopardy!”
Sony sued CBS last month, alleging that CBS had failed to get top dollar for the two game shows and had engaged in self-dealing.
In response, CBS argued that Sony is simply trying to renege on a 42-year-old contract, after CBS rejected Sony’s nine-figure offer to buy out the deal.
“Sony is attempting to obtain in court what it could not get at the bargaining table: the rights to the Series for free, by finding any excuse it can muster,” the countersuit states.
“Wheel of Fortune” and “Jeopardy!” were initially produced by Merv Griffin Enterprises and syndicated by King World. Sony inherited the shows when it acquired MGE; CBS took over distribution responsibilities when it bought King World.
Sony argued in its lawsuit that CBS has suppressed the value of the popular game shows by favoring its wholly-owned programming in distribution deals with TV stations. For example, “Wheel” and “Jeopardy!” have been bundled with CBS shows like “The Hot Bench” and “The Drew Barrymore Show,” with stations forced to take the entire package if they want the game shows.
Sony also charged that CBS has given its own shows better placement in local markets, and that the distribution negotiations had been hampered by widespread layoffs at CBS. The final straw, according to Sony, was when it learned that CBS had entered into unauthorized deals for the shows in New Zealand and Australia, and had kept $3.6 million in distribution fees.
CBS offered a far different version of events, arguing in its countersuit that Sony has been manufacturing controversies in a “Sisyphean journey of reclaiming — for free — all the rights to the Series.”
CBS alleges that Sony has interfered in talks over distribution of UK and Australia versions of the shows, preventing CBS from exercising its contractual rights. CBS also claims that Sony has barred it from offering celebrity versions of the game shows in overseas markets, or signing overseas deals that go beyond 2028, both of which CBS says are in violation of the contract. CBS also accuses Sony of withholding license fees for interactive versions of the shows.
According to CBS, Sony approached the company in early 2024 and offered to buy out the distribution deal.
“Willing to listen to any proposal, CBS agreed to hear Sony out, and Sony offered CBS nine-figures in exchange for CBS’s rights under the Agreements,” the countersuit states. “In response, CBS proposed a counteroffer, which Sony deemed too high, and declined.”
In August, Sony told CBS it was terminating the deal over the failure to turn over the distribution fee for New Zealand and Australia. CBS counters that it has already paid Sony what it is owed on those deals, and that only CBS has the unilateral right to terminate the contract.
In the countersuit, CBS is seeking to enforce the contract and to reclaim what it says it is owed for the various breaches of the agreement.
Read the full article here
