Conan Out, Jay Back in at The Tonight Show

The peacocks are coming home to roost:

Jay Leno has made a new deal with NBC, which gives him "The Tonight Show" from 11:35 - 12:35 ... sources tell TMZ.

As we first reported, under the contract Jay had been working under, he was guaranteed the 10 PM hour. By moving him to 11:35, NBC was in breach of his contract and needed to negotiate a new deal. That is now done, sources tell TMZ.

So Conan O'Brien is out, and Jay is restored.

The question now is will the audience go with him back to 11:35, and where will O'Brien's audience go? I don't think this is over yet.