‘Wheel of Fortune’ and ‘Jeopardy’ Lawsuit: Why Sony is Suing CBS Over Iconic Shows

Sony is coming down hard on CBS, and long-running game shows Wheel of Fortune and Jeopardy!. According to Variety, Sony filed a lawsuit with Los Angeles Superior Court, accusing the network of “self-dealing and failing to maximize in revenues” for the syndications of the two shows. The two studios have long been in partnership for the game shows. Sony is on the production side, while CBS oversees distribution.

The suit alleges that “CBS has seen waves of layoffs and corporate turmoil” in recent years, rendering it “incapable of properly distributing the shows.” Allegedly, CBS entered into unauthorized deals in both New Zealand and Australia, with $3.6 million in fees. When Sony demanded the money, CBS refused, claiming that Sony “had already received its fair share of the fees.”

That was apparently the “tip of the iceberg” for Sony, accusing CBS of much more misconduct. One of the allegations is CBS “failed to secure top-dollar prices for the shows domestically and overseas.” Sony’s lawyers allege, “CBS’s massive staffing cuts and restructuring have kneecapped its ability to meet its contractual obligations.”

Additionally, when it comes to licensing negotiations, Sony accuses CBS of pairing the game shows with less popular CBS-owned shows like The Hot Bench and The Drew Barrymore Show. “CBS’s bundling of Jeopardy! and Wheel of Fortune with comparatively unpopular CBS-owned shows lowers the gross receipts that CBS would otherwise secure for the Shows had they been sold independently,” the suit alleges. “The most popular network affiliates generate more in advertising dollars and typically also pay higher licensing fees. Placements at the highest-rated network affiliates also contribute to maximizing revenues for a show in the long term by ensuring that the series is exposed to the largest market audience and, in turn, higher advertising rates in the local market.”

Up until 2022, CBS allegedly had a dedicated marketing team for Jeopardy! and Wheel of Fortune, but the “sweeping layoffs” from the merge with Viacom to form Paramount Global led to some changes for CBS marketing staffers, with the two shows being put on a “low priority” list. With Paramount Global’s sale to Skydance this year, more layoffs have come, and it has not been good as Sony alleges CBS “can no longer fulfill its end of the bargain, noting that CBS recently let its contract with Nielsen lapse – undermining its ability to handle advertising sales.”

Considering Jeopardy! and Wheel of Fortune have no end in sight even with Ryan Seacrest now hosting Wheel and the deal with CBS and Sony has been going for a long time, it’s hard to tell how this will all go. It’s possible CBS may just need some leeway with all of the behind-the-scenes changes at Paramount, but it also sounds like Sony is getting impatient with it all. CBS has no plans to back down in the fight, though, with their statement ending with, “We look forward to vigorously defending this lawsuit in court.”