Walden Confirms Ongoing Kimmel Talks Amid Late-Night Financial Strain

Key points

• Walden stated that late-night television is a 'challenging daypart' due to a smaller broadcast audience, despite Kimmel's rising ratings.
• The show's massive YouTube viewership does not generate sufficient revenue to justify the high production costs of a premium talk show.
• Kimmel is currently on a one-year contract extension through the 2026-27 season, with his previous deal expiring in May 2027.
• Walden blamed the live-action 'Moana' box office underperformance on its release proximity to the animated 'Moana 2,' which had generated significant demand.
• Recent Disney layoffs, including a voluntary retirement program, were described as necessary adaptations to technological shifts and competitive pressures.

Background

This development follows months of uncertainty regarding the show's future, including a September Page Six report claiming Kimmel would depart after 24 years, which ABC denied. Earlier in 2026, the show faced temporary suspension due to political pressure from FCC Chair Brendan Carr and Nexstar Media. The current negotiations are part of a broader 'One Disney' strategy under CEO Josh D'Amaro, which includes multiple rounds of layoffs and cost-cutting measures across the company.

How outlets are covering it

Variety, Deadline, TheWrap, and The Hollywood Reporter all report on Walden's comments at the Bloomberg Screentime event, but they emphasize different aspects. Variety highlights the political context, including FCC threats and the show's role as a symbol of free speech. Deadline focuses on the financial mechanics, noting that Kimmel has previously argued late-night shows should not cost $120 million and that budget cuts are a key negotiation point. TheWrap and THR emphasize the uncertainty, noting that Walden refused to make a definitive announcement, joking that she was leaving the news to HBO's Casey Bloys. All outlets agree that the core issue is the mismatch between high production costs and declining broadcast revenue, despite strong digital engagement.

Why it matters

The outcome of these negotiations will determine the future of one of the last major late-night shows on broadcast television. If Disney cannot find a financially viable model, it may signal the end of the traditional late-night format, which has already been impacted by the cancellation of 'The Late Show with Stephen Colbert.' The decision also reflects broader industry trends where media companies are prioritizing digital revenue over traditional broadcast models, potentially reshaping the landscape for other premium talk shows.

What to watch

Negotiations between Disney and Kimmel's team are expected to continue through 2026, with a decision likely needed before the current one-year contract expires. The outcome will depend on whether both parties can agree on a new budget structure that balances production quality with financial sustainability. Additionally, Disney will continue to monitor the performance of its other IP, such as 'Moana,' to determine future investment strategies in live-action adaptations.