Colbert’s ‘Late Show’ was reportedly losing CBS $40M a year as critics speculate politics drove cancellation

A new report is putting a spotlight on the finances of “The Late Show” as critics speculate the CBS cancellation was a political move to silence its anti-Trump host Stephen Colbert. 

Puck News’ Matt Belloni reported the late-night show “has been losing more than $40 million a year” for CBS and that it had a budget of “more than $100 million per season,” contrasting it with network’s daytime and primetime programming, which he noted were “still profitable.”

“‘Late Show,’ with its topical humor and celebrity interviews pegged to specific projects, has struggled on Paramount+. And of the three network late-night shows, ‘Late Show’ has by far the smallest digital footprint on YouTube and other platforms,” Belloni wrote. “So from a business perspective, the cancellation makes sense.”

CBS CANCELS ‘THE LATE SHOW,’ STEPHEN COLBERT TO END PROGRAM IN MAY 2026

Belloni said the sources he spoke with at CBS and Skydance Media, the company that is set to buy the network’s parent company Paramount Global as part of an $8 billion merger, insist Colbert’s cancellation was “based on economics, not politics,” pointing to the decision to give his show a 10-month extension to May 2026 instead of pulling the plug immediately as evidence.

“Still, two other people with deep ties to CBS and Late Show suspect otherwise,” Belloni said. “After all, when a network decides that a show is too expensive, executives typically go to the key talent and ask them to take pay cuts, fire people, or otherwise slash costs. That didn’t happen here—though with Colbert said to be making between $15 million and $20 million per year, a pay cut wouldn’t have solved the problem on its own.” 

The veteran entertainment journalist went on to suggest that political motivations could be in play if Paramount goes on to also cancel “The Daily Show,” which airs on CBS’ sister cable network Comedy Central, but stressed, “for now, I cautiously (and skeptically) believe that this was mostly an economic decision.”

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That said, Belloni asked whether this was “the dam bursting” in late night on broadcast television, suggesting that Jimmy Kimmel at ABC as well as Jimmy Fallon and Seth Meyers at NBC could be next. 

“I’ve sensed that the networks have all been reluctant to be the first to pull the trigger on a cancellation in the historic time slot. CBS has now fired the opening shot, and it’s reasonable to suspect that NBC and ABC will follow,” Belloni wrote. “So no, I wouldn’t sleep well tonight if I were Kimmel or Fallon, though both have larger digital footprints and do a lot more for their respective networks. Fallon and Meyers have also been protected by Lorne Michaels, who produces both their shows, though I wonder if even Lorne might recognize that the 12:30 slot is increasingly not viable, and the sacred cows of television are being slaughtered, one by one.”

President Donald Trump speculated about the future of the other late-night hosts in his Truth Social post celebrating “The Late Show” cancellation.

“I absolutely love that Colbert got fired,” he said. “His talent was even less than his ratings. I hear Jimmy Kimmel is next. Has even less talent than Colbert! Greg Gutfeld is better than all of them combined, including the Moron on NBC who ruined the once great Tonight Show.”

CBS said in its statement Thursday announcing the cancellation that it was “purely a financial decision against a challenging backdrop in late night,” adding, “It is not related in any way to the show’s performance, content or other matters happening at Paramount.”

In a somber message breaking the news to his studio audience, Colbert said, “The folks at CBS have been great partners.” 

However, he struck a vastly different tone on Monday while slamming Paramount’s recent settlement with Trump.

“I believe this kind of complicated financial sentiment with a sitting government official has a technical name in legal circles. It’s ‘big fat bribe,'” Colbert said. “Because it all comes as Paramount’s owners are trying to get the Trump administration to approve the sale of our network to a new owner, Skydance!”

There had been concerns within Paramount that not settling Trump’s lawsuit would halt its Skydance merger, which needs the approval of the FCC.

Skydance Media CEO David Ellison, who would control CBS after the planned merger, is believed to desire a less-partisan operation.

Liberal critics, including several top Democrats, have expressed outrage towards CBS, insisting Colbert’s show was canceled for political reasons. 

Paramount did not immediately respond to Fox News Digital’s request for comment.