Top CBS Network execs, including Chairman Sumner Redstone and President Les Moonves, are quietly meeting inside Blackrock to delve into the long-term effects of David Letterman's ongoing extortion-case imbroglio involving past female staff working at Late Show.
Publicly, CBS has offered support for the iconic 62 year-old Late show host, but as new details emerge over Letterman's sexual flings, including an alleged "secret bedroom" above the Ed Sullivan Theatre, officials are concerned that more lurid details and accounts of Letterman's sexual forays could become cumbersome for both Letterman and the network itself.
Letterman's contract runs until August of 2010, but the network has been negotiating with him for an extension through 2013. Those talks have been temporarily put on hold.
CBS officials were banking on the story to "sort of 'go away'", as did Letterman himself last weekend, but in fact the story has picked him steam, as some of the women who worked for Letterman acknowledged sexual affairs. On in particular, Stephanie Birkett, revealed romantic flings with Letterman as late as June 2008.
In addition, Gerald Shargell, a high-powered NY attorney representing the alleged extortionist, Joe Halderman, made the rounds of all the morning talk shows talking boldly about the chance to cross-examine Letterman. He called the host "manipulative" and said his client has been maligned by the DA in this case.
**Letterman's ratings have been high; his "confession" show blew away Conan O'Brien and Jimmy Kimmel, but long term implications, like viewer and advertiser reaction concerns CBS officials. So far, no Late Show sponsors have pulled their ads, but what would happen if one of the women were to speak publicly?
CBS, like most big corporations, has a rigid and strict sexual harassment policy. The prospect of one of its prized TV assets being exposed as a workplace offender has the brass deeply concerned.
"This is turing into a soap opera that we hope has a good ending", said one network insider, but "if it reaches the courtroom and headlines emerge,", then "we'd be concerned."
Would CBS brass ever consider the prospect of firing Letterman? Not likely, given the extraordinary amount of money he brings into CBS' coffers. But if the story continues to gather steam and any more revelations emerge, everything is on the table, including Letterman's ouster.
Clouding the murkiness of the story? Both Redstone and Moonves have had highly publicized affairs of their own. Talk about dilemma central.
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