Paramount Global (PARA, Financial) is pulling the plug on The Late Show with Stephen Colbert come May 2026. It's all about tightening the belt—rising costs and viewers shifting to streaming have forced CBS to make some tough calls. The company is quick to point out this isn't about the show's quality or politics, just dollars and cents.
Of course, everyone's talking about Colbert's “big fat bribe” quip after Paramount's $16 million settlement with President Trump. Some wondered if that stirred the pot, but executives say the cancellation and the lawsuit are totally separate. The settlement, wrapped up July 1, did throw a wrench in Paramount's planned Skydance Media merger, which is still waiting on FCC approval.
Behind the scenes, legacy TV channels are bleeding revenue, digital ad sales are under pressure, and the streaming side hasn't turned profitable yet. That's why analysts like UBS's John Hodulik and Loop Capital's Alan Gould are sticking with Sell ratings and a $10 target—they see more downside as Paramount navigates these headwinds.
