A Los Angeles judge on Thursday said Sony Pictures Television has the right to take over distribution of its game shows “Jeopardy!” and “Wheel of Fortune” from longtime partner CBS, dealing a blow to the broadcast network.
Sony terminated its distribution deal with CBS in August and later filed a breach-of-contract lawsuit that claimed the Paramount Global-owned broadcaster entered into unauthorized licensing deals for the shows and then paid itself a commission.
The suit in Los Angeles Superior Court also alleged that CBS licensed the shows at below-market rates and failed to maximize advertising revenues.
“The court believes that Sony had the right, in its discretion, to terminate the distribution agreements,” Judge Kevin Brazile wrote in his order denying CBS’ bid for a preliminary injunction that would have blocked Sony.
CBS has long handled the distribution of “Jeopardy!” and “Wheel,” which are owned by Sony and produced on the studio’s Culver City lot. As viewing of traditional TV has declined due to competition for streaming in recent years, the two daily game shows have continued to thrive and are among the most-watched programs in television.
CBS plans to appeal the ruling. The company said that the contract with Sony is not dead yet.
“This is only a preliminary ruling based on partial evidence, not the outcome of the full case,” a CBS representative said in a statement. “We’re confident once all the evidence is heard at trial, we will prevail on the merits. In today’s ruling, the court itself recognized the balance of harm tips in CBS’s favor, so we will ask the appellate court for a stay pending our appeal.”
CBS has said Sony’s claims “are rooted in the fact they simply don’t like the deal the parties agreed to decades ago.”
CBS takes in up to 40% of the fees that TV stations pay to carry the shows. The company took over the distribution of the program when it acquired syndication company King World Productions in 1999.
King World struck deals with the original producer, Merv Griffin Enterprises, in the early 1980s to distribute “Jeopardy!” and “Wheel.” Sony later acquired Griffin’s company, but those early agreements remain in effect.
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