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Game Show Network Demands $160 Million

LOS ANGELES (CN) - The Game Show Network cable channel accused an Indian-based mobile casino games-maker of fraud, claiming in court that the Indian company backed out of a $160 million deal, to sell itself to another buyer.

Santa Monica-based Game Show Network sued Bash Gaming of Fremont, its subsidiary BitRhymes of Bangalore, India, and its principal Sumi Gupta, in Superior Court. Game Show Network alleges breach of contract, fraud, deceit and other counts. It also sued Bash's investment adviser, the Palo Alto merchant bank The Raine Group, and partner John Salter.

Game Show Network broadcasts game and reality shows, including "Family Feud" and "The Newlywed Game." It is a joint venture between DirecTV and Sony Pictures Television.

According to the 16-page complaint, the cable channel, eager to find users of cross-platform games, negotiated a deal with Gupta and Salter in July to buy Bash Gaming shares for $130 million.

After Sony gave its blessing, however, Salter told the channel that Bash had received superior offers, the lawsuit states.

Sony then tabled an improved offer of $160 million, Game Show Network claims, including $1 million annual salaries for Gupta and non-party Bash co-founder, Vikas Gupta.

During an Oct. 18 telephone conversation with Game Show CEO David Goldhill, Gupta accepted the offer and "represented that the parties had a binding deal and that Bash would stop negotiating and refrain from any further negotiations with third parties," the lawsuit states.

The cable channel says it was strung along for the rest of October, until Gupta told Goldhill at the end of the month that he had accepted another offer for the gaming company.

"At no time between entering the Oct. 18 agreements and Mr. Gupta's call to Mr. Goldhill on Oct. 30 did anyone from Bash or Raine indicate that, contrary to their assurances, Bash was considering other options, in negotiations with another party, or otherwise not committed to moving forward with the GSN transaction," the complaint states, abbreviating Game Show Network.

Game Show Network seeks an injunction against the sale of Bash shares to the unidentified third party, and an order that Bash close the deal with the cable channel.

Game Show Network is represented by Bennett Miller with Cooley LLP, of Palo Alto.


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