Late night TV is a very competitive business for eyeballs. On top of “The Tonight Show” and many other choices of live and nearly-live entertainment venues for your eyeballs, the news of David Letterman’s retirement from “The Late Show” may have been ignored by many more than it would have been say a decade ago. Now CBS Corp. (NYSE: CBS) has confirmed that Stephen Colbert of “The Colbert Report” will succeed Letterman as host of “The Late Show” after Letterman retires.

CBS has been making slight changes to see if it can boost its corporate and share performance of late, including the CBS Outdoor spin-off of its billboard advertising unit. Colbert’s deal is a five-year agreement between him and CBS.

Letterman has hosted the CBS late night series for 21 years now. Colbert’s debut will be announced after Lettermen’s timetable for his final broadcasts in 2015 is announced.

CBS said of Colbert:

Stephen is a multi-talented and respected host, writer, producer, satirist and comedian who blazes a trail of thought-provoking conversation, humor and innovation with everything he touches. He is a presence on every stage, with interests and notable accomplishments across a wide spectrum of entertainment, politics, publishing and music. We welcome Stephen to CBS with great pride and excitement, and look forward to introducing him to our network television viewers in late night.

CBS shares have sold off with the broader market and since its spin-off. Shares were down 3% at $60.48 in mid-afternoon trading on Thursday.

Will Colbert’s move be a revenue generator for CBS? Maybe, but likely not by much. We have to keep in mind that CBS generated almost $15.3 billion in revenues in 2013 alone.

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