why did cbs cancel the late show

CBS canceled "The Late Show with Stephen Colbert" primarily due to financial reasons. Despite the show consistently ranking at the top of its time slot and attracting a strong audience, it was reportedly losing money—about $40 million a year according to some sources, although that figure has been contested and may be somewhat inflated. Executives described the decision as an "agonizing" but necessary one given a challenging advertising market, declining late-night TV ad revenues, and the overall financial sustainability of the show. The cancellation coincided with CBS's parent company Paramount's pending merger with Skydance, which often involves cost-cutting measures. There has been speculation and controversy around whether the show's frequent criticisms of Donald Trump and Paramount's $16 million settlement with Trump influenced the decision, but CBS and Paramount officials denied any political motivations, stating the decision was purely financial and unrelated to the show's content or performance.