Sony will take over distribution of syndicated game shows Jeopardy! and Wheel of Fortune from CBS, a court has ruled.
Los Angeles Superior Court Judge Kevin Brazile, in a tentative ruling issued on Thursday, denied CBS’s bid for a court order that would’ve temporarily blocked Sony’s efforts from assuming distribution.
“The Court believes that Sony had the right, in its discretion, to terminate the distribution agreements in August 2024,” the order stated. “The evidence shows that the agreements limit licensing agreements to a two-year period, but that CBS had made a number of agreements in Australia and New Zealand for a longer period of time.”
In a statement, CBS Media Ventures said the ruling will be immediately appealed. It added, “This is only a preliminary ruling based on partial evidence, not the outcome of the full case. 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.”
Sony, which didn’t immediately respond to a request for comment, produces the two long-running shows, which are perennially among the most-watched syndicated programs on broadcast TV. In February, Sony took over CBS’s role as a distributor after claiming that the network breached its contract by entering into unauthorized licensing agreements. CBS later filed for a restraining order seeking to keep the terms of the deal in place, which was granted.
At the heart of the lawsuit: allegations that CBS licensed the shows at below-market rates, failed to maximize advertising revenue and has overall rendered itself incapable of living up to its end of the agreement with Sony by implementing far-reaching layoffs that have allegedly decimated teams responsible for the shows’ distribution, marketing and advertising sales.
CBS, which filed a countersuit last year alleging that Sony is unfairly trying to get out of the deal, maintained that it has mostly complied with the distribution agreements and made billions for Sony.
More to come.