Media giant Paramount Global (PARA) is set to end CBS’ widely popular show, The Late Show with Stephen Colbert, in May 2026. CBS and Paramount executives stated that the decision is “purely financial” and not related to the show’s performance, content, or political issues. The company cited a shifting trend in late-night TV viewership toward online streaming as one of the primary reasons for the move.
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Commenting on the news, host Stephen Colbert said, “It’s the end of ‘The Late Show’ on CBS. I’m not being replaced. This is all just going away.” The show has consistently been one of the highest-rated late-night shows on American TV. Despite CBS’ clarification, the timing of the cancellation has sparked significant controversy and speculation from audiences and politicians. Some reports even suggest that CBS may consider ending all of its late-night shows.
Colbert Called CBS Settlement a ‘Big Fat Bribe’
The announcement comes just days after Colbert publicly criticized Paramount’s $16 million settlement with President Donald Trump over the “60 Minutes” lawsuit. Known for his satirical comments, Colbert referred to the settlement as a “big fat bribe,” fueling speculation among some viewers and politicians that the cancellation could be related to his remarks. Throughout his tenure, Colbert frequently joked about politics and made pointed comments about Trump during the show.
Paramount settled the lawsuit with Trump on July 1, with payments expected to go toward Trump’s future presidential library and legal fees. The lawsuit was also an overhang on Paramount’s long-awaited merger with Skydance Media, which is currently under review by the Federal Communications Commission (FCC).
Paramount’s Troubles Continue to Intensify
Paramount continues to struggle with declining revenues from legacy TV channels, pressures in digital advertising, and persistent streaming losses. Meanwhile, the company is aiming to improve performance in its Direct-to-Consumer (DTC) segment while navigating industry-wide shifts and macroeconomic uncertainties.
Meanwhile, Wall Street analysts are becoming increasingly cautious about Paramount’s prospects. UBS analyst John Hodulik recently reiterated his Sell rating on PARA and kept his price target at $10 (22.7% downside), citing weak box office performance of the latest Mission: Impossible release. Similarly, Loop Capital’s Alan Gould reiterated a Sell rating and $10 price target, expressing skepticism about its merger with Skydance Media.
Is Paramount Stock Worth Buying?
On TipRanks, PARA stock has a Moderate Buy consensus rating based on two Buys, seven Holds, and six Sell ratings. Also, the average Paramount Global price target of $11.92 implies 7.9% downside potential from current levels. Year-to-date, PARA stock has gained 24.8%.
