By Lucas Shaw, Bloomberg
YouTube hired long-time Walt Disney Co. executive Justin Connolly to serve as its global head of media and sports — triggering a lawsuit against the Google-owned video service.
On Thursday, Disney filed suit against YouTube in state court in Los Angeles to stop the appointment, claiming breach of contract, interference in a contractual relationship and unfair competition. In the complaint, Disney said Connolly signed a new three-year contract in November 2024 that included a one-time right to terminate in March 2027. The company is seeking preliminary and permanent injunctions.
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Connolly is joining YouTube in a new position that will put him in charge of the service’s relationships with major media companies, including those that supply programming to YouTube TV, its cable-like online subscription video service. He’ll also be in charge of the company’s growing live-sports portfolio, according to a memo Thursday from Mary Ellen Coe, YouTube’s chief business officer.
Neither YouTube nor Connolly responded to requests for comment.
YouTube, the most-watched online video service, has expanded over the past few years from a home for user-generated content into a multipurpose entertainment hub that offers premium streaming services, live TV, music and podcasts. It is the exclusive home of the NFL Sunday Ticket and has sole rights to stream a Week 1 game from Sao Paulo on Sept. 5.
Google’s video division generated about $36 billion in advertising sales last year and accounts for more TV viewing than any other network or streaming service. Its ad revenue almost equals the combined ad sales of Disney, Paramount Global, Fox Corp. and NBCUniversal.
Connolly will serve as the emissary between YouTube and the world of traditional media and entertainment. He has spent the last 20-plus years working at Disney and ESPN, most recently serving as Disney’s head of platform distribution. He licensed Disney’s TV networks to providers like YouTube TV, as well as its TV shows and movies to streaming services.
Connolly is leaving the home of Mickey Mouse and Marvel just before the company introduces its new ESPN streaming service and ahead of negotiations with YouTube TV for its live TV networks.
The case is Disney Media & Entertainment Distribution LLC v. YOUTUBE LLC, 25STCV14929, California Superior Court, Los Angeles County (Central District).
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