Disney and YouTube Settle Executive Poaching Dispute Over Justin Connolly's Move

The Walt Disney Company and Google-owned YouTube have reached a settlement in their legal dispute stemming from YouTube's hiring of former Disney executive Justin Connolly. The resolution, confirmed by court filings, brings an end to a contentious period that began in May when Connolly departed Disney to become YouTube's global head of media and sports. While the specific terms remain confidential, the agreement allows both media giants to move forward without further litigation.

Disney initiated the lawsuit, alleging breach of contract, tortious interference, and unfair competition, arguing that Connolly's move was a significant loss given his critical role. Connolly, who served as President of Platform Distribution and Executive Vice President of Affiliate Sales and Marketing at Disney, was reportedly earning $6 million annually and had recently signed a new three-year contract extending until 2027. His responsibilities included overseeing distribution deals for Disney's vast portfolio, including ESPN and FX.

The core of Disney's concern was Connolly's intimate knowledge of the company's distribution deals, financial specifics regarding content licensed to YouTube, and overall negotiation strategies. According to court documents, Disney feared Connolly would effectively "switch sides" during ongoing billion-dollar license renewal negotiations with YouTube, potentially giving the competitor an unfair advantage, particularly concerning ESPN's sports rights. YouTube, in its defense, stated that Connolly's new employment agreement required him to adhere to confidentiality obligations and would not involve him in license agreement negotiations with Disney.

A Los Angeles Superior Court judge in June denied Disney's motion for a temporary restraining order, allowing Connolly to commence his duties at YouTube. This ruling indicated that the court found YouTube's proposed safeguards sufficient to protect Disney's interests without barring the executive's career move. The settlement's dismissal is reportedly conditioned on the satisfactory completion of unspecified terms within 45 days, with a request for dismissal to be filed by January 5, 2026.

The timing of this settlement is notable as it coincides with critical carriage renewal negotiations between Disney and YouTube TV, which were nearing a deadline for a potential programming blackout. Industry observers suggest the resolution of the executive poaching dispute could signal a more cooperative path forward for the broader distribution agreement between the two companies.