In a bombshell announcement that sent shockwaves through late-night television, CBS has decided to pull the plug on 'The Late Show with Stephen Colbert.' While the news has sparked immense speculation, CBS has remained largely tight-lipped until now.

After Skydance’s acquisition of Paramount became official, CBS's Chairman of TV Media, George Cheeks, finally addressed the elephant in the room.

"The late-night advertising market is facing a severe downturn," Cheeks explained at a recent press conference. "We absolutely love Colbert and his show; however, the financials just don’t add up anymore."

He further revealed that the network faced an additional hurdle when comedian Taylor Tomlinson declined to continue hosting 'After Midnight,' which previously aired in the same time slot as 'The Late Late Show with James Corden.' This led Cheeks to recognize that CBS couldn’t maintain its presence in that critical programming window.

"I know Skydance plans to invest wisely, and for me, it's crucial that we focus on primetime and sports moving forward," he added.

With a storied career in late-night at NBC, Cheeks remains mum on what will replace 'The Late Show,' artfully dodging questions about the possibility of bringing 'Comics Unleashed' into the coveted 11:30 PM slot.

Although Cheeks didn’t reveal the exact financial losses, industry insiders suggest the figure could be a staggering $40 million a year, which he confirmed was a significant loss in the "tens of millions." "Ultimately, continuing with the show just wasn’t a viable option," he stated.

The timing of the cancellation stirred controversy, particularly after Colbert accused CBS of accepting a "big fat bribe" related to a lawsuit settlement involving President Trump and a '60 Minutes' interview with Kamala Harris. However, Cheeks insisted the decision was purely business, tied to the timing of contract negotiations for the show's crew and the end of Colbert's three-year deal.

"We were in a seasonal period for renegotiations. It was imperative to communicate to Stephen and his team what changes were necessary moving forward," Cheeks clarified.