The legal dispute between Disney and YouTube over the hiring of former Disney executive Justin Connolly has come to a secretive close. Court records filed Tuesday show that the companies have reached a settlement, but the terms still remain confidential.
The case, filed in California Superior Court in May 2025, alleged that YouTube poached Connolly, violating contractual obligations when Connolly joined Google-owned YouTube TV as its global head of media and sports. The lawsuit accused both parties of breach of contract, tortious interference, and unfair competition, arguing that Connolly was still under a binding employment agreement with Disney.
According to court documents, the settlement will be finalized within 45 days pending certain conditions. Neither company has disclosed financial terms or further details.
Connolly’s New Role at YouTube
In his new position, Connolly oversees YouTube’s growing sports portfolio, which already includes NFL Sunday Ticket and other live sports content. YouTube wants to expand its global media and sports partnerships, including streaming major events such as the NFL’s return to Brazil in September 2025.
Insiders claim that Connolly’s move underscores the ongoing competition between traditional broadcasters and tech giants as streaming platforms increasingly vie for live sports rights.
Disney Claimed Contract Violation
Connolly, who had worked for Disney for nearly thirty years, most recently served as president of Disney Platform Distribution, overseeing distribution agreements and partnerships across ESPN, Disney’s film studios, and its streaming services.
In its complaint, Disney asserted that Connolly had signed a three-year employment contract in November 2024 that ran through 2027. The agreement included a clause allowing him to leave only after March 1, 2027. The company claimed that Connolly breached the contract by joining YouTube TV months later.
In June, a judge denied Disney’s request for a temporary restraining order and preliminary injunction that would have barred Connolly from starting at YouTube.
Settlement Timing Happens When Tensions are High Between Disney and YouTube
The settlement arrives as Disney and YouTube TV are locked in a separate carriage dispute involving ESPN and other Disney-owned channels. Their distribution agreement is set to expire Thursday at midnight, and both companies have begun alerting subscribers about a possible blackout if negotiations fail.
This is the fourth carriage battle between Disney and YouTube TV in less than a year, highlighting ongoing tension between media companies and streaming distributors as they renegotiate licensing and advertising terms in a shifting digital landscape.
Representatives for both Disney and YouTube declined to comment on the settlement or the ongoing carriage negotiations.
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