In the end it was a bidding war with TBS offering a better deal to Conan O'Brien than Fox.
TBS will let Conan own his own show (Fox might have, too, but it hadn't been worked out). His overall compensation package will be richer than at Fox, most likely, though by how much remains murky since O'Brien's salary will likely be folded into a bigger deal licensing O'Brien's show.
Overall, the budget for O'Brien's TBS show will likely be the same as it would've been at Fox. But since the show will be four days vs. five, it will go further.
Andy Richter will likely be back. It's uncertain if Max Weinberg will be, however.
Bottom line: TBS really, really wanted Conan. Fox wanted him, too, but only if it made sense — the same way CBS really wanted NFL football back almost 20 years.
How TBS outfoxed Fox to land Conan