New York: Walt Disney has initiated legal action against YouTube, a subsidiary of Alphabet Inc., aiming to prevent the platform from hiring former ESPN and Disney executive Justin Connolly as its global head of media and sports.
The lawsuit, filed late Wednesday in a Los Angeles state court, accuses YouTube of breach of contract, unfair competition, and interference with a contractual relationship. Disney asserts that Connolly is still contractually bound to the company under an employment agreement that extends through at least March 1, 2027.
Connolly, who signed a renewed three-year deal with Disney in November 2024, was granted a one-time right to terminate the contract — a clause Disney now claims has been violated. The entertainment giant is seeking both a preliminary and permanent injunction to block Connolly from proceeding with his new role at YouTube.
“YouTube is and has been aware of Connolly’s employment agreement,” Disney stated in the complaint, suggesting the tech giant knowingly interfered with the existing contract.
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As of now, YouTube has not issued a response to the lawsuit or Reuters’ request for comment.
Connolly is set to take charge of YouTube’s expanding relationships with major media entities and oversee its rapidly growing portfolio of live sports content, according to a source familiar with the matter. His appointment marks a significant move by YouTube as it continues to reshape its media strategy.
In recent years, YouTube has been positioning itself as a key player in the sports streaming sector, competing with the likes of Amazon and Netflix. A cornerstone of this push came in 2022, when YouTube secured a $14 billion streaming deal with the NFL, allowing it to broadcast major football matchups to its global audience.
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This aggressive expansion into live sports and premium content reflects YouTube’s broader ambitions to diversify its offerings beyond traditional video-sharing. The platform has also made significant inroads into live TV, podcasts, and music, generating billions in advertising revenue across its content ecosystem.
Connolly’s departure from Disney comes just as the company prepares to launch a standalone ESPN streaming platform — a critical step in Disney’s broader digital transformation strategy. Having spent over two decades at the company and most recently served as head of platform distribution, Connolly played a pivotal role in shaping ESPN’s digital footprint.
The court’s decision on the injunction could have broad implications for executive mobility in the media and tech industries, particularly as major players continue to battle for dominance in the increasingly competitive sports streaming space.
