CBS Cancels Colbert's Late Show Amid Paramount-Skydance Merger Concerns

In a surprising move, CBS announced the cancellation of "The Late Show with Stephen Colbert," effective May 2026. This decision comes on the heels of a pending merger between CBS's parent company, Paramount, and Skydance Media, raising eyebrows among industry analysts and political commentators alike. The timing of the cancellation, particularly following Colbert's recent criticism of Paramount's $16 million settlement with former President Donald Trump, suggests potential political motives behind the network's decision.

CBS's announcement, made public on July 18, 2025, has sparked significant discourse regarding the financial viability of late-night television. According to CBS, the cancellation was purely a financial decision, unrelated to the show's performance or content. “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,” stated CBS in a press release.

However, experts in the media industry argue that the cancellation could reflect deeper economic pressures. Andrew Rosen, founder of the media strategy firm Parqor, noted, “The reality is the business of late night is not going anywhere that justifies the enormous salaries that this talent is paid and the costs that these productions have.” Reports indicate that "The Late Show" costs approximately $100 million to produce annually while losing around $40 million in revenue.

The cancellation of Colbert’s show also marks the end of a notable chapter in late-night television history. Premiering in 1993, the show has undergone several transformations and has been a platform for political commentary, particularly against former President Trump, who has been a frequent target of Colbert’s satire. Colbert’s show has consistently ranked as the highest-rated in late-night television, averaging 2.42 million viewers in the second quarter of 2025, according to Nielsen ratings.

Political implications of the cancellation cannot be overlooked. The announcement coincides with the Department of Justice's review of the Paramount-Skydance merger, valued at $8 billion. Rodney Benson, a professor at New York University’s Department of Media, Culture, and Communication, commented, “The timing of it raises a lot of questions. To me, it is the politics of it, especially for broadcast legacy media.” Given that broadcast networks are regulated by the Federal Communications Commission (FCC), the dynamics surrounding media coverage and its political implications are significant.

Democratic Senator Elizabeth Warren also weighed in on the situation, stating, “CBS canceled Colbert’s show just THREE DAYS after Colbert called out CBS parent company Paramount for its $16M settlement with Trump — a deal that looks like bribery.” The growing scrutiny of media organizations under political pressure from the Trump administration has become increasingly evident, particularly regarding coverage perceived as biased.

The merger with Skydance, led by David Ellison, a known associate of Trump, adds another layer of complexity to the situation. Ellison's connections to the former president have raised concerns over potential conflicts of interest, especially amid reports that Skydance is also negotiating to acquire The Free Press, a publication perceived as favorable towards Trump.

In summary, while CBS asserts that the cancellation of "The Late Show" is a financial decision, the surrounding circumstances suggest a convergence of economic and political factors. As the landscape of late-night television continues to evolve, the implications of this cancellation extend beyond the network itself, reflecting broader trends in media and politics. The future of late-night programming remains uncertain, as industry experts continue to analyze the evolving dynamics at play in this competitive arena.