NBC has ended days of speculation and rumors by announcing the cancellation of Jay Leno’s prime-time program. NBC Chairman Jeff Gaspin told reporters in Los Angeles today that “The Jay Leno Show” will go off the air on Feb. 12. Gaspin stated that the network hopes to keep Leno for an 11:35 p.m. show, Conan O’Brien for 12:05 p.m. and then Jimmy Fallon to follow. But, Gaspin adds, “It’s not a done deal yet.” Deals with the hosts, who have had the weekend to mull over the new schedule, are still being worked out.

Last spring, NBC gave Leno a new vehicle, “The Jay Leno Show,” an hour-long talk show that airs five nights a week at 10 p.m. This move was made to make way for O’Brien, who NBC hoped would bring younger viewers to one of its flagship shows. Ratings for the “Tonight Show” have sagged with O’Brien and Leno’s new show has been ignored by viewers and blasted by critics. Gaspin stated that the network was satisfied with “The Jay Leno Show’s” performance but the affiliates were none to happy and complained of losing advertising revenue.

According to TMZ, O’Brien has three options:

  1. Quit the show and do nothing for four years and collect a cool 80 million.
  2. Go to ABC or Fox and negotiate a new contract. Apparently NBC would be obligated to make up the difference if the contract was less than his current contract with NBC.
  3. Stay put and deal with being second fiddle again.

What is your opinion? Do you watch these shows? Should Jay be given his old time slot back?

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