“Secret Deal Almost for Jon Stewart at ABC — Then Bob Iger Chose Jimmy Kimmel at the Last Minute and Cited One Shocking Reason”

In the early 2000s, the network ABC was looking to launch a major late-night talk show. According to Kimmel himself, ABC chair Lloyd Braun had been negotiating with Stewart’s manager — James “Baby Doll” Dixon — and was “about to close the deal” for Stewart to host the show. TV Insider+2AV Club+2

But in a twist that remains eyebrow-raising in retrospect, ABC ended up choosing Jimmy Kimmel. According to Kimmel, Braun watched Kimmel’s tape, liked what he saw, brought it to Bob Iger (then of The Walt Disney Company), and they made a joint decision: “I think this might be the guy.” TV Insider+1

So how did this dramatic pivot happen? What was going on behind the boardroom doors — and what does it tell us about the business of late night?

Why Jon Stewart seemed the obvious choice

Stewart was already a heavy-hitter in late night circles. As the host of The Daily Show with Jon Stewart since 1999, he had built a reputation as smart, sharp, culturally relevant and capable of delivering both comedy and commentary. At a time when networks were looking for talk show hosts who could draw younger audiences, Stewart was the natural candidate.

Moreover, with Kimmel still relatively early in his late-night hosting journey, pursuing Stewart made sense. The manager James Dixon was pushing this “closing deal” for Stewart, signalling momentum behind his candidacy. AV Club+1

The unexpected shift — and the “cheaper” reason

Despite the apparent front-runner status of Stewart, Kimmel’s tape landed in the hands of Braun and Iger — and suddenly ABC opted for Kimmel. In his own words, Kimmel asked Iger: “What was it, like why — this is quite a leap that you guys made. I was on The Man Show, I was doing football picks on Fox NFL Sunday — what was it?” According to Kimmel, Iger’s blunt answer was: “Well, you were cheaper.” And while the room laughed, Kimmel knew he wasn’t kidding. TV Insider+1

This admission is startling because it shifts the narrative from “talent wins the job” to “cost plays a major role in who hosts a major network show.” In other words: Stewart might have been the more celebrated choice — but Kimmel was more cost-effective. It’s a reminder that behind every glitzy television announcement are negotiating tables, budget forecasts and boardroom priorities.

The human side: the manager in between

Think about the position James “Baby Doll” Dixon was placed in. On one hand, he had Stewart nearly locked in. On the other hand, the network pivoted and told his client: “Sorry, not you — the other guy.” That awkward conversation — telling one top talent he was out because someone else was a more financially viable option — is the kind of moment you rarely see but which happens in the entertainment business all the time.

Kimmel relays this as: “Jon and I have the same manager … James was about to close this deal for Jon … but then … you’re not going to ABC, but Jimmy is going to ABC.” AV Club

That kind of swing has personal, financial and career implications — for Stewart, for Kimmel, for Dixon, for ABC. What narrative does that set? That the better performer isn’t always the one who gets the gig; sometimes the cheaper, risk-less choice wins.

What this meant for Jimmy Kimmel

For Kimmel, the decision by ABC and Disney to pick him launched a career that has now spanned over two decades. His show Jimmy Kimmel Live! debuted in 2003 and has become a staple of network late night. Wikipedia

Had Stewart been chosen instead, Kimmel’s path might have been entirely different. Perhaps he still would have found his niche — but this turning point shifted everything. It shows how television careers can hinge on one board-room decision, one tape, one budget consideration.

What Stewart’s side of the story suggests

You might ask: What did Stewart think? Publicly, he hasn’t said in sharp detail about being passed over. But the fact that he nearly got the deal tells us the network believed in him strongly. That belief, however, was overridden by cost-efficiency.

Stewart went on to be a dominant figure in late night, but not in that specific ABC franchise. One can only imagine how different things might have been had the network followed through with him.

The broader implications for the late-night business

Talent vs. Budget — This episode underscores a truth in television: talent matters, but budgets matter often more. The risk calculus for networks includes cost, demographic reach, advertiser appeal.

Timing and tape matter — Kimmel’s tape arrived at exactly the right moment. Networks often weigh not just who you are, but what you bring right now.

Career trajectories are fragile — For Stewart and Kimmel both, this moment could have been reversed, but wasn’t. The difference: one got the slot, the other didn’t — and that set them on diverging paths.

The unseen negotiations — Viewers see the host and the show; they don’t see the meetings, budgets, evaluations. This story reveals how much goes on behind the scenes.

Networks’ strategic priorities — Picking someone cheaper is not necessarily a put-down; it is often a strategic decision. But it also invites questions about risk, reward and creative ambition.

Retrospective: What if…

Imagine if ABC had signed Stewart. What would the late-night world look like now? Would Kimmel have found a different home? Would the tone of network late night have shifted? Would advertisers, viewers, ratings look different? These “what-ifs” fuel the fascination of this story.

Alternatively, imagine if Stewart had stayed with his existing track and Kimmel had not been offered that slot. Would Kimmel have broken through in the same way? Possibly — but networks love a “new face,” someone younger, less tested. Kimmel fit that mold and hit the ground running.

Why this story matters now

Because in 2025, with streaming services, late-night fragmentation, and talent deals more complex than ever, the old network pitch still holds: pick the right host, launch the slot, lead the culture. But the financial pressures are greater. So this story of Stewart vs Kimmel is not just nostalgia — it’s instructive.

It reminds us that for every name we see on-screen, there was a deal : a negotiation, a choice, a behind-the-scenes moment that changed everything.

Final thought

The tale of Jon Stewart nearly landing the ABC late-night show — only to have Jimmy Kimmel get it because he was the cheaper bet — is more than industry gossip. It’s a window into how television works when the glamour fades. Budget wins out. Tape matters. Timing kills. And careers pivot on yes-or-no decisions made behind closed doors.

So whenever you turn on a late-night talk show and see the host commanding the stage, remember: there was a moment before the cameras where someone said “yes” and someone else heard “not this time.” In this case, Jon Stewart heard the latter. Jimmy Kimmel heard the former.

And that, in the high-stakes world of television, changed everything.