Megyn Kelly's morning show at NBC has been canceled

Negotiations continue between Kelly, NBC

By BRIAN STELTER, CNN BUSINESS
Monica Schipper/Getty Images

(CNN) - While negotiations continue between Megyn Kelly and NBC, the network announced on Friday that her 9 a.m. talk show has been canceled.

"Megyn Kelly Today is not returning," the network said in a statement. "Next week, the 9 a.m. hour will be hosted by other 'Today' co-anchors."

Her exit from NBC News is not official yet. But it will be soon. It's a foregone conclusion among all the players involved, multiple sources said Thursday.

Kelly's newly-hired attorney Bryan Freedman reacted to Friday's NBC announcement with a statement of his own.

"Megyn remains an employee of NBC News and discussions about next steps are continuing," Freedman said.

Multiple factors explain Kelly's impending exit from NBC.

Her offensive comments this week about blackface Halloween costumes sealed her fate, but before the latest controversy erupted, NBC executives were already talking about a possible end to her one-year-old talk shows.

Lower than expected ratings at 9 a.m. and serious tensions with management are some of the other key factors.

NBC hired Kelly away from Fox News with incredible fanfare last year. Her three year contract -- said to be worth $69 million-- came with two shows: a weekday morning talk show and a Sunday evening newsmagazine. The newsmagazine, however, did not last long, and the morning talk show didn't meet ratings expectations.

Then came this week's controversy about her offensive comments regarding blackface Halloween costumes.

Kelly has had no comment since Wednesday, when she appeared live on her show and apologized for the remarks.

Thursday's live show was replaced by a pre-taped episode. Friday's show was also on tape. So it appears she will not be returning to the show to say goodbye to viewers.

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