Jay Leno's last laugh, with a $14.4m handshake

AFTER a blitz of multi-million-dollar contract negotiations and a month of innuendo, Jay Leno's exit from The Tonight Show has been sealed.

AFTER a blitz of multi-million-dollar contract negotiations and a month of jokes and innuendo, the deposition of Jay Leno as host of America's most popular late-night comedy show was announced in a series of carefully choreographed statements by the network NBC.

"Congratulations, Jimmy," said Leno, addressing his successor, comedian Jimmy Fallon, who currently hosts a 12.30am show and will take over The Tonight Show next February.

Fallon said he was "really excited to host a show that starts today instead of tomorrow".

Leno's arch-rival, David Letterman, compared the stage-managed announcement to another recent handover of power, in Rome. "How many of you folks earlier today saw the white smoke coming out of the chimney at NBC?" he said.

The New York Daily News claimed that Leno had secured a $US15 million ($14.4m) deal to go quietly - suggesting he had insisted on being paid until his contract was due to expire, in September next year.

He reportedly took a $US15m pay cut last year as the show's budget was chopped from $US100m to about $US80m.

Fallon was said to earn about $US5m a year before. While most assume he has secured a more lucrative deal for his new role, it may not be as much as Letterman or Leno earned.

THE TIMES