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David Letterman in talks to remain on CBS through 2012

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David Letterman is closing in on a deal with CBS to extend Late Show with David Letterman through the 2011-12 season, according to The Hollywood Reporter. The news of the talks comes just one week after new rival Conan O’Brien began his tenure at the helm of NBC’s venerated The Tonight Show. The deal, which reportedly includes a lower license fee due to the shaky economy, would mean Letterman, 62, will have hosted his CBS show for nearly 20 years. It was unclear whether the host’s $30 million annual salary will also be cut.