According to The Hollywood Reporter, Disney CEO Bob Iger informed employees at a town hall meeting on Monday that the company is working with United States federal investigators on the ransom case and that the "huge sum" will not be paid.
He did not name the film but said Disney had refused to pay and was working with federal investigators.
The cyber crooks allegedly threatened to release five minutes of the kidnapped flick, followed by 20-minute chunks if no ransom is paid.
Iger made the comments Monday in a town-hall meeting with ABC staff before the network's fall season presentation to advertisers Tuesday in NY.
It was not revealed what movie the hackers might have stolen, but Deadline claims to have heard from their sources that the movie in question is the latest title in the Pirates of the Caribbean franchise. Hackers recently uploaded an entire season of "Orange is the New Black" to online file-sharing services before Netflix Inc. released the episodes on its streaming service.
"We figured a pragmatic business such as yourselves would see and understand the benefits of cooperating with a reasonable and merciful entity like ourselves, " the hackers continued. "Our offer (s) are still on the table - for now".
It's unclear if The Dark Overlord is behind the Pirates of the Caribbean hack; however, it's important to note the hacker did threaten ABC Networks, Fox, National Geographic, and IFC following the OITNB release.
That group also said it possessed stolen copies of other television shows including Celebrity Apprentice and NCIS: Los Angeles.