The CBS late-night show featuring Stephen Colbert could have been canceled sooner if not for the backing of the merger between parent companies Paramount and Skydance.
As the independent studio and its partner Redbird Capital navigate the media giant’s $8 billion acquisition, they’re scrutinizing CBS’s financials, which show considerable losses, especially with “The Late Show with Stephen Colbert.”
Sources suggest the show may soon exceed the $40 to $50 million losses it reported last year, and once the Skydance deal is finalized, it’s likely to be a primary candidate for cancellation.
“This is a money-losing venture on all fronts,” one insider said. “If they were in control, they would have axed it already. There’s a lot of frustration here.” Colbert, while a noteworthy figure in late-night talk shows, seems to be losing viewers, particularly as audiences increasingly drift toward alternative entertainment sources.
Advertising revenue is becoming harder to secure, especially given Colbert’s political commentary and high production costs, which could lead to further financial declines.
A spokesperson for Paramount remained tight-lipped, merely noting that Colbert has not yet surpassed the $50 million annual loss threshold.
Colbert is expected to remain until at least next May, and he won’t likely bow out quietly. During a recent episode, he took a jab at President Trump, who had criticized Colbert publicly.
“Can someone who lacks pride truly create satire?” was a sentiment echoed by the audience, although not much laughter was reported coming from Skydance’s headquarters. They reportedly prioritize the decision to end the show, given the responsibility to their shareholders.
The merger, approved by regulators overseeing President Trump’s administration, follows a detailed evaluation by the Federal Communications Commission.
Skydance chief David Ellison has indicated to Hollywood associates that a stagnant deal was nearing completion and would be sanctioned shortly.
At the same time, Paramount’s management, as part of the current deal, paid $16 million to resolve a lawsuit stemming from a contentious interview with Kamala Harris.
Skydance, as the new owner, is committed to spending tens of millions on ads supporting Trump’s agenda. According to insiders, these financial maneuvers could aid in pushing the deal past FCC reviews.
“Ellison appears to be cautious about imposing restrictions on CBS and Trump, and he might be sympathetic to maintaining a balanced narrative,” noted an insider involved with the FCC.
Young Ellison and his attorney have recently met with FCC Chair Brendan Kerr to discuss maintaining impartiality in Paramount and CBS’s operations and ensuring diverse perspectives in their programming.
The review by the FCC will assess whether CBS maintains a consistent left-leaning bias, which, if substantiated, could conflict with public interest regulations. This comes in response to concerns raised by a conservative legal group alleging that CBS imposes onerous financial burdens on local affiliates.
“The committee must consider this issue seriously,” stated a letter from the organization highlighting the need to safeguard local news interests.
No remarks were provided by the FCC regarding the situation.
