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DivX Sues Yahoo

Posted by: Jonathan M, 08:09 AEDT, Wed November 19, 2008

Tags: DivX/Xvid, Other

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Yahoo reneges on advertising deal with DivX that was agreed on last year

DivX has filed a lawsuit against Yahoo! for breach of contract, after Yahoo notified the firm that it intends to void its two-year advertising services agreement with DivX that was made last year.

The agreement would have offered consumers who downloaded DivX video software tools, a co-branded version of the Yahoo Toolbar. The Yahoo-DivX advertisement contract was worth at least $5 million for this fiscal year.

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