CBS has decided to end “The Late Show with Stephen Colbert,” with two schools of thought on the cancellation’s impact. The move may be tied to Paramount’s merger with Skydance, approved by the FCC. Disney’s decision on Jimmy Kimmel’s show fate next year will shed light on late-night TV’s future.

The cost of producing late-night programs has risen as traditional TV faces challenges from streaming. Paramount and Disney reported lower ad sales in May, impacting revenue. High-profile late-night shows like Colbert’s and Kimmel’s are facing financial pressures amid changing viewer habits and media landscape shifts.

Paramount’s decision to cancel “The Late Show with Stephen Colbert” raises suspicions due to timing. Colbert criticized Paramount’s settlement with Trump, leading to speculation about motives for the cancellation. Despite declining ratings, Colbert’s show outperformed competitors in the 11:35 p.m. hour and was the highest-rated late-night broadcast show according to Nielsen.

Read more at CNBC: CBS canceling Colbert raises questions about late night