CBS canceled The Late Show with Stephen Colbert in July 2025, set to end in May 2026, due to massive annual losses of $40-50 million. The shows budget exceeded $100 million annually, including Colbert’s $15-20 million salary and a 200-person staff, while ad revenue dropped 40% from $121.1 million in 2018 to $70.2 million in 2024. Despite leading ratings with 2.42-2.47 million viewers, the show couldn’t offset costs in a streaming-dominated market where younger audiences prefer YouTube and TikTok clips, which CBS struggles to monetize. Meanwhile, Fox News’ Gutfeld!, hosted by Greg Gutfeld, dominates late-night ratings with 3.1 million viewers and 398,000 in the 25-54 demographic, outpacing Colbert’s 1.9-2.47 million and 288,000 in the same demo for 21 consecutive months, all with a fraction of the staff (8 employees) and budget.

Colbert and peers like Jon Stewart and Jimmy Kimmel suggested the cancellation was politically motivated, pointing to Paramount’s $16 million settlement with President Trump over a 60 Minutes lawsuit and a pending $8 billion merger with Skydance Media requiring Trump administration approval. Colbert called the settlement a “big fat bribe,” implying his criticism of Trump led to his show’s end, while Stewart and Kimmel echoed claims of political censorship, omitting the show’s dire financial losses. CBS insists the decision was purely financial, driven by the collapsing economics of late-night TV, with industry-wide ad revenue falling from $439 million in 2018 to $220 million in 2024.

The contrast between The Late Show and Gutfeld! highlights the shifting late-night landscape. Gutfeld’s lean operation thrives on cable with lower costs and broader appeal, while Colbert’s high-budget model struggled despite strong ratings. The financial reality, not politics, drove the cancellation, as evidenced by other cost-cutting measures like The Tonight Show reducing taping days and Late Night with Seth Meyers axing its house band.