CBS announced the cancellation in July, with executives citing a challenging advertising environment and declining revenue across late-night television. Critics, however, noted the decision came as Paramount finalised a multibillion-dollar merger with Skydance requiring Trump administration approval, and days after Colbert criticised Paramount for settling a lawsuit with Trump for $16 million over a 60 Minutes interview edit. According to The Guardian - World, Letterman described the financial explanation as a lie, suggesting the cancellation was tied to the merger.
Colbert, a vocal critic of Trump, took over The Late Show in 2015 after Letterman's 22-year tenure.