Disney Sues YouTube To Block Hiring Of Former ESPN Executive Justin Connolly Amid Sports Streaming Turf War

On Wednesday, Walt Disney Co. DIS filed a lawsuit against YouTube, a subsidiary of Alphabet Inc.'s GOOG GOOGL Google to stop the appointment of former ESPN executive Justin Connolly as its new global head of media and sports, alleging breach of contract, unfair competition and interference with a contractual relationship.

What Happened: The lawsuit, filed in Los Angeles state court, claims Connolly signed a three-year contract in November 2024 that committed him to Disney through March 1, 2027, reported Reuters, adding that Connolly had a limited one-time termination option.

YouTube was aware of Connolly's contractual obligations, Disney alleged, seeking a court order to block his employment.

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

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Why It's Important: Connolly had spent over two decades at ESPN and Disney and stepped down earlier this week as head of platform distribution.

YouTube on Thursday confirmed the hire. Connolly will oversee relationships with major media companies and lead its growing live sports portfolio, the report added, citing sources familiar with the matter.

Price Movement: On Thursday, Alphabet Inc.'s Class A shares gained 1.37%, while Class C shares increased by 1.13%. During the same period, Disney shares rose 0.61%, according to data from Benzinga Pro.

As per Benzinga Edge Stock Rankings, Alphabet boasts a growth score of 88.68%. Click here to see how it compares to other companies.