Disney and YouTube have reached a settlement in the case involving the departure of high-level executive Justin Connolly, who now oversees YouTube’s media and sports operations. Connolly left Disney after 25 years in May, prompting Disney to sue both YouTube for poaching him and Connolly for breaching his contract. The lawsuit stated that Connolly had only been five months into a new three-year contract as president of platform distribution.
Disney’s lawyers filed a notice of settlement on Tuesday, although the details of the resolution were not disclosed. Connolly was one of Disney’s highest-paid executives, earning $6 million in 2024. He led a team of 300 people responsible for content distribution deals with cable and satellite providers, streaming services, and YouTube TV, reporting to top Disney executives.
Disney argued that Connolly’s departure came at a critical time as the company was entering billion-dollar license renewal negotiations with YouTube, with Connolly as the lead negotiator. The company believed that Connolly’s move to YouTube would give them inside knowledge of Disney’s negotiation strategy. Talks between Disney and YouTube appear to be at a standstill, with Disney warning customers that its programming could be dropped from YouTube TV if a deal is not reached.
Disney also expressed concerns that Connolly’s move to YouTube could give the platform an advantage in direct competition with ESPN for sports rights, as he would have insider information about ESPN’s financial capabilities. Despite being warned by Disney executives not to join YouTube, Connolly proceeded with his decision.
In court, YouTube argued that Connolly would be restricted from negotiations with Disney and would uphold confidentiality obligations. They also suggested that Disney was using the lawsuit as leverage in the license renewal talks. Judge James Chalfant denied Disney’s motion for a restraining order, stating that Disney had not shown an emergency or likelihood of success on the merits.
Connolly expressed gratitude for his time at Disney and stated his desire to pursue his dream job at YouTube. He hoped to mend relationships with former Disney colleagues in the future. The settlement between Disney and YouTube brings an end to the legal battle surrounding Connolly’s departure.
