CBS has reportedly canceled “Late Show with Stephen Colbert,” facing financial losses estimated between $40 million and $50 million annually. Interestingly, sources indicate that political factors were not involved in this decision.
The 61-year-old host was let go just days after CBS reached a $16 million settlement with Donald Trump following a contentious “60 Minutes” interview with Kamala Harris. This settlement was related to negotiations involving Trump’s administration about a significant sale to the independent studio Skydance.
Colbert expressed his discontent during a recent monologue, stating, “I’m offended and I don’t know if there’s anything to repair my trust in the company.” He added somewhat sarcastically that a $16 million payment might help with his grievance.
“Don’t get ads”
Insiders report that Colbert’s jokes aimed at CBS executives became less entertaining in light of the network’s concerns over diminishing advertising revenue.
Despite Colbert’s ratings success, the lack of advertisers became a significant issue. Paramount co-CEO George Cheeks ultimately made the decision to end the show. A source familiar with the matter noted, “Colbert hasn’t got an ad and it’s a tough place late at night.” He added that while Colbert may top the ratings, the audience for late-night television is dwindling.
Some Democrats have raised eyebrows, suggesting that Colbert’s left-leaning tendencies might have had an impact, especially considering CBS’s need to secure cooperation from the Trump administration for a merger with Skydance, which produces the “Mission: Impossible” franchise.
Shortly after Colbert’s settlement comment, some speculated that his cancellation could indicate political influence. Senator Elizabeth Warren pointed out that the public deserves to understand if the show’s cancellation had political motivations.
Interestingly, the CEO of Skydance, David Ellison, has ties to Trump, being the son of billionaire Larry Ellison. Reports indicate that CBS had also compensated Trump $16 million over a misinformation claim stemming from the “60 Minutes” interview.
In light of Colbert’s dismissal, Trump took to social media, expressing delight at Colbert’s firing and hinting that Jimmy Kimmel might be next, implying a lesser talent in comparison.
A passionate denial
Despite the perceived conflict due to Ellison’s ties to Trump, sources claim that Skydance was not involved in the decision-making regarding Colbert’s cancellation. It appears that financial losses drove the cancellation, with estimates suggesting the show was costing between $40 million and $50 million annually.
Reports indicate that younger viewers are turning away from traditional television, contributing to the decline in audience numbers for “The Late Show.” With only around 2 million viewers and just 200,000 in the desired demographic, its decline was evident.
Advertising revenue has also taken a hit, with estimates suggesting that CBS’s late-night programming brought in $220 million in 2024, a significant drop from previous figures.
Jeff Shell, the former head of NBCUniversal, now overseeing CBS, described the network as a “melted ice cube,” highlighting its financial challenges.
“Truth-based” turns
The network aims to invest in sports and “truth-based” news, countering accusations of liberal bias that conservatives often raise. A spokesperson for Paramount declined to comment on the connection between the financial losses and the cancellation.
Ellison, meanwhile, is keen on getting regulatory approval for the Paramount-Skydance deal, with potential conditions that address concerns regarding the perceived bias in CBS’s news programming.
