So in a nutshell, Olbermann wanted more money than what NBC wanted to pay. It's all about ratings.
And in the view of some, likely including NBC, he is a "loose cannon" who's time in the limelight is likely already overdone; time for someone new.
As for the "blackout period" - that's pretty standard ... similar to what Conan O'Brien experienced - he couldn't have a show for awhile, but was still able to do other things, and be on the internet right away.
Ron
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