NBC reportedly agrees to pay Conan $30M

MSNBC ^ | 01/15/2010 | Sharon Waxman

[iowamark]

NBC has its way out of the Conan Crisis.

The network has agreed to pay O'Brien $30 million to vacate the 11:35 p.m. "Tonight Show,"...

Guarantee or no? As TheWrap previously reported, Team Conan was insisting that NBC has breached O'Brien's contract because, it argued, the deal had a timeslot guarantee.

NBC's response: No, there is no such guarantee of a specific timeslot for "Tonight." So as long as we keep something called "The Tonight Show" on the air, there is no breach.

If NBC had been in breach, it would have owed Conan around $40 million (and as much as $50 million, according to some reports), as a penalty.

People close to NBC insisted the network would not yield on this point — it wouldn''t admit it had breached O'Brien's deal...

[iowamark]

Good money for a disaster!

[HuntsvilleTxVeteran]

I find television very educational.
The minute somebody turns it on,
I go to the library and read a good book.

Groucho Marx (1890 - 1977)

[E. Pluribus Unum]

His contract is $20-million per year x 3.5 years is $70-million.

Evidently NBC is unfamiliar with the concept of fulfilling a contract.

[Bernard]

For $39 Million, Conan could offer real market value for MSNBC and own his own network. Of course, he would have to hire some actual talent to replace all the empty chairs currently on the payroll there, but the network already has a long-standing tradition of running comedy shows, so it would be a good fit.

[omega4179]

Conan quit by not taking his Tonight show to 12:05 so he just gets his parachute.

[driftdiver]

So what are they selling to raise this money?

[Brilliant]

I think they realize that Conan is going to Fox no matter what, and they want to up the bidding so that Fox must pay a lot.

[AnotherUnixGeek]

Conan quit by not taking his Tonight show to 12:05

As many have pointed out, 12:05 is not "Tonight". NBC is weaseling out of it's agreement with Conan and is going to pay $30M to do so.

[Armedanddangerous]

I think he ought to get $60 mil
Just to put the nail in zuckers coffin

[Wally_Kalbacken]

That’s what the contract pays if he stays through the end. They probably negotiated a breach payment (liquidated damages, if you will) and that’s where something less than $70M comes from. If they breach, he gets that payment, and can be on the air in some period of time at an alternate venue. So, given that he can be earning another income stream, you would expect the breach obligation to be less than the remaining term times the negotiated rate.

That said - NBC is looking very stupid. Unless they think they have a “New Coke” kind of promotion masquerading as a controversy (and I don’t see it) this is really dumb.

[zebrahead]

NBC and Leno are definitely to blame here. This is the second time Leno has pulled some sort of shyster BS to steal something that wasn’t supposed to be his. I hope Leno loses fans for life and NBC pays a fortune for breaching their contract with Conan.

[Falconspeed]

Nikki Finke is constantly updating the story. Jay and Conan vs. Zucker.

[AnotherUnixGeek]

NBC and Leno are definitely to blame here. This is the second time Leno has pulled some sort of shyster BS to steal something that wasn’t supposed to be his.

And this time around people are much more aware of it, due to the Internet and social media. It's hard to believe Leno and NBC can simply go back to business as usual at 11:35 - Leno is seen as the guy who just bombed like the Enola Gay at 10 PM and stabbed Conan in the back. It's also hard to believe that Comcast isn't going to send a few NBC executive heads rolling as part of it's acquisition.

[iowamark]

http://gawker.com/5447357/ari-emanuel-doesnt-match-up-to-mike-ovitz-in-new-late-night-war
“Ari Emanuel Doesn’t Match Up to Mike Ovitz in New Late Night War”

[dandiegirl]

I’d be glad to take 30 million and not work. What’s the problem with that? How much money do these no talented celebrities think they need anyway? Doesn’t this qualify for an outrageous bonus in Obamaland? Hollywood salaries need to be reigned in by the pay czar.

[MinorityRepublican]

Agreed. It is business after all, Conan should just take the money and lay low with occasional appearances as a stand-up comedian.

And enjoy life as a filthy rich fat cat.

[ncfool]

What does Conan’s team and crew get for following him to CA from NY.

[excopconservative]

So what are they selling to raise this money? - - - -

They will probably ask for a bailout.

[A.A. Cunningham]

Leno is seen as the guy who just bombed like the Enola Gay at 10 PM and stabbed Conan in the back.

Poor analogy. The Enola Gay was a success.

[UnbelievingScumOnTheOtherSide]

Half will go for taxes. Maybe 90% when Obama hears about it.