Colbert calls the child a "natural-born newsman" and jokes that he is leaving the "Colbert Report" because "news anchor babies like this are breathing down my neck."
"At 5 years old, he’s already got the sincerity of Edward R. Murrow, the reassuring gaze of Walter Cronkite and more gravitas than Steve Doocy," Colbert said.
Colbert also noted that he already has his own "apparently" catchphrase.
"That is the sort of senseless repetition that marks a real news legend like Sean Hannity," Colbert said before playing clips of Hannity reporting from Israel constantly using the word "literally."
"Apparently, that 5-year-old child could replace Sean Hannity," Colbert said.
Hannity expressed outrage with Colbert during a Wednesday interview with TVNewser.
Newser mentioned the Colbert segment and asked Hannity to address how he deals with comedians poking fun at him.
"First of all, he’s not as funny as Jon Stewart. Stephen Colbert will have the lowest-rated late night show. There are issues that just aren’t funny. Terrorism isn’t funny. I didn’t see the bit. I won’t see it. I don’t care," Hannity responded.
"Maybe Stephen Colbert needs to come over here and get a dose of reality. He sits in the comfort of his studio, reading jokes written for him by 30 writers," he continued. "So, I have a challenge for Stephen Colbert: I’ll pay for your flight. I’ll pay for your hotel, your meals. Then you sit on the border. You talk to the people. You sit across from the mother of an Israeli solider who was killed, and then make a joke about it."
Watch the "Colbert Report" clip via Comedy Central: