By Asmita - May 23, 2025
Walt Disney files a lawsuit to stop YouTube from hiring its veteran executive Justin Connolly, alleging breach of contract and unfair competition. Disney seeks to block Connolly from joining YouTube due to contractual obligations and fears of insider advantage in ongoing negotiations. The legal battle reflects the intense competition between tech and media giants in the sports streaming industry.
Walt Disney via Goodfon
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Walt Disney has launched a legal battle to block YouTube from hiring Justin Connolly, a veteran executive with over two decades at Disney and ESPN, to oversee its global media and sports division. Disney filed a lawsuit in Los Angeles state court, accusing YouTube of breach of contract, unfair competition, and interference with a contractual relationship. The company alleges that Connolly, who recently served as Disney’s head of platform distribution, is still bound by a contract signed in November 2024, which requires him to remain with Disney until at least March 2027.
Disney’s complaint seeks both a temporary and permanent injunction to prevent Connolly from taking up the YouTube role, arguing that his departure would violate the terms of his employment agreement. The contract, according to Disney, includes a one-time option for Connolly to terminate early, but only under specific conditions. Disney claims YouTube was fully aware of these contractual obligations when it extended the job offer to Connolly, yet proceeded regardless.
Connolly’s move comes at a pivotal time for both companies. He is expected to lead YouTube’s relationships with major media firms and manage its expanding live sports portfolio, a sector where YouTube has been aggressively investing. The platform secured a $14 billion NFL streaming deal in 2022 and is competing with other tech giants like Amazon and Netflix for sports rights. Disney, meanwhile, is preparing to launch its own standalone ESPN streaming service, intensifying the competition in the digital sports broadcasting arena.
Disney’s lawsuit also highlights concerns over Connolly’s insider knowledge, particularly as Disney is currently renegotiating a major licensing deal with YouTube. The company argues that Connolly’s intimate understanding of Disney’s distribution strategies, financial details, and negotiation tactics could give YouTube an unfair advantage. This legal dispute underscores the high stakes and fierce rivalry among tech and media giants vying for dominance in the lucrative sports streaming market.