CBS, Letterman talk new deal

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CBS and David Letterman have begun discussing a new deal to keep the Late Show host on the network beyond 2010, according to sources with knowledge of the early talks.

The two sides are striking up talks as the 11:30 timeslot is about to undergo a sea change with Conan O’Brien taking over The Tonight Show and Jay Leno deciding not to jump to ABC and compete for those viewers.

Both CBS and Letterman could see that as an opportunity for Letterman to pick up some new eyeballs and potentially take over as the top host in late night with Leno out of the picture, as he moves on to start his 10 pm show on NBC.

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