What started as a seemingly silly sounding news article at TMZ claiming that the "Jay Leno Show" had been cancelled, has turned in to be one of the ugliest, most public blowups in recent television history. Since watching TV I certainly have never seen hosts on networks attack a network or host (Leno) as much as with this fiasco.
It all started with that TMZ article, then more sources and finally the public revealing that the Leno show was no more and then the ugliness and one of the most surprising decisions in recent TV history occurred - NBC came up with Leno at 11:35-12:05 and Conan as the Tonight Show on from 12:05-1:05. While it may seem decent as it keeps both popular hosts on and avoids any breach of contracts (just a simple re-negotiation with Jay), that's the only positive.
It cuts Jay's TV time in half and he stays as the Jay Leno Show, Conan gets screwed with the Tonight Show being pushed back for the first time in it's 60 year history and is once again behind Leno despite having the most prized Late Night Show. Needless to say Conan wasn't happy and publicly said "NO". As it is right now, all indications (and some sources) say that Leno has been offered and agreed to come back to the Tonight Show with Conan, as soon as next week, gone.
Even though it's just a squabble with Last Night talk show hosts, it's quite amazing because of the TV impact it has. It is also one of the biggest PR hits I've seen a network take, every late night host (including NBC's own) attack it nightly - Ferguson called the network "lying rat bastards".
Anyways nothing is finalized yet but the long term effects for Conan and NBC seem enormous. The short-term effect on NBC is hugely bad, likely also bad on Leno for PR reasons as well, NBC has Leno at the helm for a few years - very unlikely more than 5 years with the heir as Fallon? No, instead an outsider would be hired and would struggle for decent ratings for a while. Oh, the irony.