Disney has filed a lawsuit against YouTube and former top executive Justin Connolly, accusing the video platform of poaching Connolly while he was leading crucial licensing negotiations between the two companies.
In a complaint filed May 21 in California state court, Disney Media & Entertainment Distribution LLC alleged that YouTube knowingly induced Connolly to breach his contract, which required him to stay with Disney through at least March 1, 2027.
“It would be extremely prejudicial to Disney for Connolly to breach the contract which he negotiated just a few months ago and switch teams when Disney is working on a new licensing deal with the company that is trying to poach him,” the complaint said.
The entertainment giant is suing Connolly for breach of contract and YouTube for tortious interference with contractual relations and unfair competition.
According to the filing, Connolly signed a three-year employment agreement in November 2023 with a clause allowing him to exit only on March 1, 2027, provided he gave written notice by the end of 2026. However, Disney says it learned in April that YouTube had extended a job offer and encouraged him to leave early.
“This news came at a critical time,” Disney said, noting Connolly’s key role in ongoing product launches and major distribution renegotiations — including the very license renewal talks with YouTube.
Connolly, who served as president of platform distribution, allegedly had “intimate knowledge” of Disney’s negotiation strategies and financial details related to YouTube’s licensing of its content.
Despite Disney informing YouTube of the employment agreement and demanding it stop interfering, the company claims YouTube “persisted” in its recruitment efforts. Connolly resigned on May 16 and has not responded to Disney’s inquiries about his new role, the complaint says.
News reports indicate Connolly is now serving as YouTube’s global head of sports and media.
Disney is seeking an injunction to stop Connolly from violating his contract and to prevent YouTube from interfering further.
YouTube has not commented on the lawsuit. Connolly could not be reached.
The case is Disney Media & Entertainment Distribution LLC v. YouTube LLC et al., case number 25STCV14929, in the Superior Court of the State of California for the County of Los Angeles.
