Colbert confirmed the cancellation during a show taping on Thursday. CBS said the move was "purely a financial decision against a challenging backdrop in late night."

The cancellation comes shortly after Paramount, on July 1, agreed to pay President Donald Trump a $16 million settlement over a lawsuit the president filed against it. The lawsuit accused CBS's "60 Minutes" of "deceptive editing" of his interview with presidential rival Kamala Harris.

The decision to cancel The Late Show comes just two days after Colbert criticized the company’s decision to settle a frivilous news distortion lawsuit brought by President Donald Trump last year. The lawsuit centered around a “60 Minutes” interview with his then-political rival, former Vice President Kamala Harris.