I listen to Keith Olbermann so you don't have to

condensed greatly:

IQ47 had nothing to do with the cancellation
CBS has been wanting to get out of late-night for a long time (and has been
trying to sell the Ed besides)
they saw a way to kiss DC ass and solve their problem, leaving themselves
mostly untarnished

also, KO has a very low opinion of Colbert, but that's besides the point

if you feel the need,
https://www.youtube.com/watch?v=Kdj9TyZoxBc&list=WL&index=13&t=2355s
(1.25x or 1.5x recommended)

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