Conan O'Brien is losing The Tonight Show but he'll be getting a whopping $32.5 million consolation prize, courtesy NBC, sources have told TMZ.
However, in return, Conan can't host another show until September. Reportedly, NBC is also paying severance to Conan's Tonight Show employees. In all, reports suggest NBC's payout is around $40 million.
According to the deal, any money Conan makes during the remaining contract period with NBC will offset the network's obligation. So, if Fox were to make a deal with Conan and pay him $25 m during the NBC contract period, Conan would only score $7.5 m.
However, a source told TMZ, that NBC may keep its intellectual property rights. So Conan can't take his creations - such as Triumph the Insult Comic Dog and the Masturbating Bear to his next gig. The deal still isn't completely done, but it's very close, reported the website.