Disney Loses Legal Battle To Block Executive Justin Connolly's Move To Rival YouTube

On Wednesday, Walt Disney Co. DIS lost its legal effort to prevent longtime executive Justin Connolly from leaving the company to join YouTube, a subsidiary of Alphabet Inc.'s GOOG GOOGL Google.

What Happened: Los Angeles Superior Court Judge James Chalfant denied Disney's request for a preliminary injunction and temporary restraining order, which aimed to stop Connolly from transitioning to YouTube, reported Reuters.

Disney had filed a lawsuit last month, claiming Connolly's departure breached his contract and could lead to unfair competition. The company sought to block his new role at YouTube.

"We are disappointed in today’s ruling, but will continue to pursue our legal remedies," a Disney spokesperson told the publication.

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YouTube did not immediately respond to Benzinga's request for comments.

Why It's Important: Connolly, who spent more than 20 years at ESPN and Disney, stepped down last month from his role as head of platform distribution.

Previously, Reuters cited sources familiar with the matter stating that Connolly will manage partnerships with major media companies and spearhead the expansion of YouTube’s live sports offerings.

Price Movement: On Wednesday, Alphabet Inc.’s Class A shares rose by 1.13%, while Class C shares were up 1%. In contrast, Disney’s stock dipped by 0.097%, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings highlight Disney’s strong price momentum across short, medium and long-term periods. Additional detailed metrics can be found here.