(Bloomberg) -- CBS accused Sony Group Corp. of trying to pressure the broadcasting company through litigation into giving up decades-old rights to distribute the popular Wheel of Fortune and Jeopardy! game shows.
A countersuit filed by CBS Tuesday in Los Angeles Superior Court intensifies a dispute over the shows after Sony’s TV arm, which produces the two programs, accused CBS, a division of Paramount Global, of breaching a contract they’ve had for more than 35 years.
CBS says it declined a “nine figures” offer by Sony this year to terminate the distribution agreement because it “undervalued” the series, and made a counter offer that Sony deemed too high. CBS also claims that during discussions about the agreement, Sony never raised concerns that the network was under-performing in its sales efforts before going to court last month.
“Now, 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,” CBS said in its complaint.
A spokesperson for Sony didn’t immediately respond to a request for comment.
Sony accused CBS in an Oct. 31 suit of making more than $1 billion in profit from the distribution agreement, but not working aggressively enough to maximize revenue from licensing the shows to local TV stations and selling advertising in them.
The dispute is playing out as the TV business is going through a transition, with viewers gravitating away from broadcast and cable channels and being increasingly drawn to streaming services like Netflix, which has squeezed profits at legacy media companies like Paramount Global.
The case is Sony Pictures Television Inc. v. CBS Studios Inc., 24STCV28777, California Superior Court, Los Angeles County.
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