CBS Cancels “The Late Show with Stephen Colbert” Due to Financial Losses

CBS has decided to cancel “The Late Show with Stephen Colbert,” citing significant annual losses estimated between $40 million and $50 million. The decision was reportedly driven by financial considerations rather than political motives, despite the show’s high ratings and Colbert’s popularity.

The cancellation came just days after Colbert criticized CBS’s parent company, Paramount, over a $16 million settlement with former President Donald Trump. Colbert expressed his disappointment in his monologue, stating, “I am offended, and I don’t know if anything will ever repair my trust in this company.” The network’s leadership, however, attributed the show’s demise to its inability to secure adequate advertising revenue. Despite leading in its time slot, “The Late Show” has seen declining viewership, particularly among younger audiences, leading to reduced ad revenue. In 2024, late-night shows at CBS generated roughly half the ad income they did in 2018.

The Ed Sullivan Theater marquee with 'The Late Show' sign. — The Ed Sullivan Theater, where “The Late Show” is taped, stands in New York City.

While Colbert remains the top late-night host, industry insiders note that advertising is scarce for the show, prompting CBS to pull the plug. Some speculate that political factors may have influenced the decision, as Colbert’s progressive stance and recent criticisms of CBS’s corporate dealings could have played a role.

Sources indicate that Skydance CEO David Ellison, whose company has ties to Trump confidant Larry Ellison, was not involved in the show’s cancellation. The network’s chief, George Cheeks, announced the decision, emphasizing the show’s mounting losses.

“His talent was even less than his ratings,” joked comedian Jimmy Kimmel, hinting at behind-the-scenes tensions. Despite the show’s success, viewership has dropped sharply as audiences shift away from traditional TV. CBS’s late-night ad revenue has declined significantly, and industry analysts describe the network as a “melting ice cube” due to ongoing financial struggles.

The Ed Sullivan Theater in New York, where 'The Late Show' is recorded. — The Ed Sullivan Theater, where “The Late Show” is filmed, is seen in Midtown Manhattan.

Looking ahead, CBS plans to focus on sports and “truth-based” news, aiming to address longstanding accusations of liberal bias. Meanwhile, regulatory approval for CBS’s merger with Skydance, now settled after legal challenges from Trump, is expected by mid-August, though conditions related to content fairness and bias are likely to be imposed by the FCC.