CBS Extends Letterman’s Contract

CBS Extends Letterman's Contract 1CBS and David Letterman have agreed on a deal that will extend his ”Late Show” through 2010, an executive with Mr. Letterman’s company, Worldwide Pants, said yesterday. The terms were not disclosed. Under his previous deal, Mr. Letterman, right, is said to have been making $31 million a year. The four-year extension, which is about the same length as Mr. Letterman’s earlier agreements with CBS, which he joined in 1993, means that he will continue his show on CBS past the point where his longtime rival, Jay Leno, had agreed to step down from NBC’s ”Tonight” show. Mr. Leno is scheduled to depart in mid-2009, with Conan O’Brien signed to replace him. Mr. Letterman joined CBS only after losing out on the ”Tonight” show position. In recent years, Mr. Leno has maintained a solid ratings edge over Mr. Letterman, but Mr. Letterman continues to take in between $70 million and $100 million a year for CBS.