CBS Turns Late-Night Loss into Profit with Byron Allen Time-Buy Deal

CBS has announced that its decision to cancel Stephen Colbert's "Late Show" and lease the time slot to Byron Allen will generate $15 million in profit, a dramatic turnaround from a $40 million annual loss. Under the time-buy arrangement, Allen Media Group covers all production costs and pays CBS a fee, while selling its own advertising. The shift represents a $55 million swing for the network. The move has been widely criticized, with David Letterman calling executives "lying weasels" and industry speculation suggesting the cancellation was politically motivated to appease President Donald Trump, who dislikes late-night political humor. Colbert's finale drew 6.7 million viewers, while Allen's debut "Comics Unleashed" garnered 878,000 total viewers across two half-hour shows on a Friday, a traditionally low-viewership night. Ad spending on late-night TV has fallen to $209 million in 2025 from $519.7 million in 2017, a 60% drop. "The Late Show" accounted for 27% of late-night ad spending in 2025 and 29% in 2026.