MW Was canceling Stephen Colbert's 'Late Show' really about money? The numbers don't entirely back it up.

By Lukas I. Alpert

Paramount's ad revenue for its TV division has not fallen significantly recently, and the company highlighted the success of the 'Late Show' in its last earnings report

Paramount says its decision to cancel "The Late Show with Stephen Colbert" despite it being the No. 1 late-night television program was "purely a financial decision."

But there is little in Paramount Global Inc.'s (PARA) recent earnings report to indicate that the finances of its television division had eroded so precipitously that jettisoning one of its trademark programs would be a necessary solution.

Executives even highlighted the show's performance as the No. 1 late-night broadcast show.

Overall, advertising revenue for the television division declined 21% in the first quarter compared with the same period the year before, but the company said that was entirely due to the fact that CBS had broadcast the Super Bowl in 2024 but not in 2025. Excluding that loss, advertising revenue was flat year over year.

That's not to say things have been rosy for CBS or any other television company. Paramount has seen advertising revenue at its television division decline 20% since the first quarter of 2022.

Late-night shows have felt the decline acutely. In 2018, late-night shows on the major networks recorded $439 million in ad revenue, according to advertising-data company Guideline. Last year, that declined to $220 million.

"This is purely a financial decision against a challenging backdrop in late night. It is not related in any way to the show's performance, content or other matters happening at Paramount," the company said in a statement issued after Colbert announced his departure, planned for next May, to his studio audience on Thursday.

The decision came as Paramount is trying to finalize its sale to David Ellison's Skydance Media, a deal that has been held up pending approval by the Federal Communications Commission.

A representative for Paramount didn't immediately respond to a message seeking further comment.

Colbert's contract was reportedly due to expire at the end of next year.

There has already been contraction in the late-night space. CBS recently canceled the show "After Hours" after its host, comedian Taylor Tomlinson, opted to leave despite the program being renewed for a third season.

The TBS late-night show "Full Frontal with Samantha Bee" was canceled in 2022 following the merger of Warner Media and Discovery to become Warner Bros. Discovery (WBD).

Just hours before news of Colbert's departure was announced, Jon Stewart, whose "Daily Show" appears on Paramount's Comedy Central, said he was uncertain about the future of his own program.

"I'd like to think we bring enough value to the property, like if they're looking at it as purely a real-estate transaction, I think we bring a lot of value," he said on his podcast on Thursday. "But that may not be their consideration. I don't know, they may sell the whole f-ing place for parts."

Colbert's show has consistently been the highest rated among late-night programs, but the show had recently begun losing money, CNN reported.

The sudden end for the show, which will air its last episode in May, came as a surprise to most media-industry watchers and raised suspicions among some that it is the result of political pressure, following Paramount's recent agreement to pay President Donald Trump $16 million to settle a lawsuit in which he accused CBS of deceptively editing an interview with Democratic presidential candidate Kamala Harris last year.

Most legal experts considered the lawsuit baseless and that the settlement came under pressure.

After Paramount reached the agreement, Colbert expressed his displeasure with the deal, calling it a "big fat bribe." Two days later, Colbert's show was canceled. Colbert had previously been scathingly critical of Trump on air.

In a post on his Truth Social platform, Trump applauded Colbert's departure.

"I absolutely love that Colbert got fired. His talent was even less than his ratings," Trump wrote.

The Writers Guild of America, which represents many writers on the show, said the timing appeared suspicious and called on New York Attorney General Letitia James to investigate.

"For ten years, the show has been one of the most successful, beloved and profitable programs on CBS, entertaining an audience of millions on late night television, on streaming services and across social media," the union said. "Given Paramount's recent capitulation to President Trump in the CBS News lawsuit, the Writers Guild of America has significant concerns that 'The Late Show's' cancellation is a bribe, sacrificing free speech to curry favor with the Trump administration as the company looks for merger approval."

-Lukas I. Alpert

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July 18, 2025 16:16 ET (20:16 GMT)

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