Sony Pictures Television has informed CBS Studios that it is taking over full distribution of syndicated game shows “Wheel of Fortune” and “Jeopardy” as a legal battle between the two studios heats up.
“To facilitate an orderly transition of the distribution functions for the Shows, on Jan. 27, 2025, Sony Pictures delivered to CBS the episodes of the shows to air the week of Feb. 3-9,” the letter, obtained by TheWrap, states. “We expect CBS to take all necessary steps to ensure that the episodes are properly delivered to broadcasters. Sony Pictures will begin delivery of episodes of the shows to broadcasters starting with the episodes scheduled to air the week of Feb. 10.”
The move comes as it recently requested permission from the court to file an amended complaint in its lawsuit filed in October against CBS, which alleges Sony is owed money from the two studios’ past distribution deals and that CBS breached its contract by setting up licensing deals in Australia and other overseas markets. Sony says that it terminated its distribution agreement in August over the breach of contract.
CBS countersued in November, arguing that its contract is clear that it holds the distribution rights to these series in perpetuity.
“We strongly refute any claims by Sony that we did not use our best efforts in distributing the programs or otherwise failed to abide by our obligations under the agreements,” CBS said in a statement at the time. “Sony’s claims are rooted in the fact they simply don’t like the deal the parties agreed to decades ago.”
CBS’s counsel sent Sony a letter on Nov. 26, arguing that it had failed to identify any material breaches of its agreement. It also revealed that it made payments of $720,000 for fees allegedly owed from “Pictionary” and $1,094,763, which CBS said “represent[s] the distribution fee that CBS acquired, attributable to the complained of out-of-season [New Zealand and Australia] licenses, effective within the last six years.”
“Neither payment cures—or could cure—the other ways that CBS has breached and continues to breach its obligations under the agreements. Sony Pictures also disputes that the belated payment related to the New Zealand and Australia licenses reflects the full amount due to Sony Pictures in connection with those licenses and disagrees that the payment ‘cures’ those breaches,” Sony’s letter adds. “The uncured material breaches—both collectively and independently—have deprived Sony Pictures of the benefits of the parties’ bargain and fully justify termination of the agreements.”
Sony has asked CBS to turn over the following:
- Domestic licensing agreements relating to the Shows, including any renewals or amendments.
- Agreements related to licensing the Shows in foreign territories, including any renewals or amendments.
- Foreign format license agreements relating to the Shows, including any renewals or amendments.
- Advertising sales agreements relating to the Shows, including any renewals or amendments, and any related rate cards.
- Current inventory reports related to advertising for the Shows.
- Current stewardship reports related to advertising for the Shows.
- For items 1-4 above, the contact information for CBS’s primary contact in connection with those agreements.
In a statement to TheWrap, CBS said Sony’s termination of the distribution arrangement is “false, inappropriate, and ineffective” and that it will be filing a temporary restraining order, asking the court to maintain the business agreements as the case plays out in court.
“Sony has no rights under the distribution agreements to terminate them, and CBS remains the distributor for the Series, notwithstanding any communications from Sony to the contrary,” CBS added. “Any contention by Sony that it has reclaimed the distribution rights is subject to ongoing judicial proceedings, and CBS will be seeking immediate relief from the appropriate courts. All business should continue in the usual course.”
