Exclusive: Google, Disney settle Justin Connolly poaching case as sides negotiate carriage deal

As Google and Disney work to hammer out a new distribution deal by a Thursday evening deadline, the two sides have reached another deal over a lingering legal dispute.

According to court records obtained by Awful Announcing, Google and Disney have reached a settlement in the poaching lawsuit involving former Disney/ESPN distribution executive Justin Connolly, a sign that the two sides may be more likely than not to reach a new carriage deal for Disney content on YouTube TV and avoid blackouts.

In May, Google-owned YouTube TV hired Connolly away from Disney shortly after he had signed a multiyear deal to remain with the entertainment conglomerate through 2027. Disney subsequently filed a lawsuit, alleging breach of contract and demanding an injunction and temporary restraining order (TRO) against the executive. Disney was denied the injunction and TRO, and later appealed the decision.

Connolly was tasked with leading Disney in negotiations with distributors, including YouTube TV. However, prior court filings indicate Connolly recused himself from any of the ongoing carriage negotiations between Google and Disney as part of his new role at YouTube TV. Connolly’s official title at YouTube TV is global VP of media and sports partnerships.

The timing of this settlement is almost certainly not a coincidence, and likely bodes well for a new agreement to be reached before any of Disney’s content goes dark on YouTube TV. The current deadline for an agreement is set for Thursday at 11:59 p.m. ET. However, if two side are committed to reaching a deal and are still finalizing details, it’s common for short-term extensions to be reached to avoid disruption of service.

Terms of the settlement in Connolly’s poaching case were not revealed in the court filings. Both parties will have 45 days to fulfill their agreed-upon obligations before the case will be officially dismissed.