Conan O'Brien Seals Deal to Exit NBC
After days of tense negotiations, "The Tonight Show" host Conan O'Brien signed an agreement early Thursday to part ways with NBC, according to a person familiar with the situation.
The deal clears the way for rival Jay Leno to reclaim his old show at 11:35 pm. Mr. O'Brien signed the agreement around 1 a.m. Pacific time.
NBC is expected to announce the agreement later on Thursday morning.
While details on the final agreement were unclear, the deal was expected to include a payout of about $32 million for Mr. O'Brien and about $12 million for his staff. It is also believed to include a nondisparagement clause, both for the 46-year-old comedian and NBC. The deal has been said to include a provision that would bar or limit Mr. OBrien from appearing on other shows or hosting his own show for a period of time, according to people familiar with the negotiations.
"In the end, Conan was appreciative of the steps NBC made to take care of his staff and crew, and decided to supplement the severance they were getting out of his own pocket," said Gavin Polone, Mr. O'Brien's manager. "Now he just wants to get back on the air as quickly as possible."
Mr. O'Brien walks away from "The Tonight Show" after almost eight months on air. His exit comes after NBC hatched a plan to shift Mr. O'Brien's show back by 30 minutes to make way for Mr. Leno, whose run in primetime has been marred by muted ratings. Mr. O'Brien argued that "The Tonight Show" wasn't "The Tonight Show" at 12:05 am and refused to move. NBC has been under pressure from local television stations who complained that ratings for Mr. Leno's show at 10 p.m. were poor and damaging the lead-in to their local news broadcasts at 11 p.m.
Mr. O'Brien has privately also blamed the weak lead-in for his own soft ratings, but NBC executives had said Mr. O'Brien shared the blame.
Mr. O'Brien took the reins of "The Tonight Show" last June after a 17-year run by Mr. Leno. NBC had promised Mr. O'Brien the show five years earlier, as an incentive to sign a new contract with the network.