Disney and YouTube Settle Poaching Dispute Over Top Executive

In a recent development, the media giant Disney and the Alphabet-owned video platform YouTube have reached a settlement in their legal dispute over the hiring of Disney's platform distribution president, Justin Connolly.

According to a filing in the Los Angeles Superior Court, the settlement agreement outlines the dismissal of the matter by January 2026, subject to the "satisfactory completion of specified terms." The court has also noted that a notice of settlement of the entire case has been filed.

The legal feud began in May when Disney sued YouTube, alleging breach of contract, tortious interference with contractual relations, and unfair competition. Disney claimed that Connolly, who had been overseeing the company's third-party media sales and distribution efforts since 2019, had "intimate knowledge" of Disney's business strategies and negotiations, which would be prejudicial to the company if he were to join YouTube.

However, YouTube argued that Connolly was employed on an at-will basis and that an order requiring him to return to Disney or quit his new position would be unlawful. The judge initially denied Disney's request for emergency relief, citing a lack of showing of emergency and the balance of harms favoring Connolly.

With the settlement, the two parties have now put an end to their legal dispute, which comes as they are also engaged in carriage negotiations, with their current contract set to expire on Thursday. Disney has warned YouTube TV subscribers about the possibility of a programming blackout if a new deal is not reached.