Granted you have to take everything that TMZ reports with a HUGE grain of salt, but they are reporting that Conan is being given the option for his show to move to Midnight to 1 or no show. They are planning on a 1/2 hr Jay Leno show at 11:35 EST after local news.
While I have been a fan of Jay Leno, I am a bigger fan of Conan. I personally like his more physical style of comedy. Regardless of my personal taste, it does seem extremely unfair that Conan has not even been host of the Tonight Show for 1 year and he's already getting the raw deal here.