Disney, YouTube Settle Suit Over Poached Exec With Deep ESPN Ties

The California state lawsuit over YouTube’s poaching of a former Disney executive has ended in a settlement, although an unrelated carriage dispute between the companies remains ongoing.

The suit, filed in May, saw ESPN’s parent company sue YouTube and longtime Disney executive Justin Connolly over his move to Google-owned YouTube TV in a newly created role as global head of media and sports. 

On Tuesday, the two sides settled the case, court records show. Terms of the settlement were not disclosed. It will only be finalized if certain unspecified conditions are met within 45 days, the court filing says. Awful Announcing first reported the settlement.

The settlement was reached as YouTube TV remains embroiled in a carriage battle with Disney, its fourth such battle in the last three months. The Disney-YouTube TV contract expires at midnight Thursday, and both sides have been running consumer alerts about the potential loss of those channels on the YouTube TV service.

A representative for YouTube declined to comment on the carriage dispute and settlement. A representative for Disney declined to comment further than confirming the settlement. Lawyers for each side did not respond to requests for comment about the settlement.

Connolly spent nearly three decades with Disney, beginning as a financial analyst and ultimately becoming one of the company’s most senior executives, most recently as president of Disney Platform Distribution, overseeing direct-to-consumer services and content agreements across entertainment, studios, and sports, and working closely with ESPN chairman Jimmy Pitaro. 

Disney had alleged that both YouTube and Connolly engaged in breach of contract, tortious interference of contractual relations, and unfair competition. The lawsuit, filed in Los Angeles County Superior Court, claimed Connolly signed a three-year employment agreement with Disney last November covering all of 2025–27, with a one-time termination right becoming effective March 1, 2027. Under that termination right, he would have been allowed to leave Disney for any reason, but only starting March 1, 2027. He left Disney for YouTube long before then.

In June, the judge denied Disney’s bid for a temporary restraining order and preliminary injunction blocking Connolly’s move. 

As part of his role at YouTube, Connolly aims to expand a sports profile that already includes residential distribution rights for NFL Sunday Ticket and a recent deal to carry the league’s return to Brazil on Sept. 5 with the Chiefs and Chargers.