DivX and Yahoo Settle Suit

DivX (NASDAQ: DIVX), the San Diego video codec developer, says it has settled a lawsuit with Yahoo (NASDAQ: YHOO) over an advertising agreement that triggered some turmoil at DivX last fall. Terms were not disclosed, but DivX says the settlement will boost its third-quarter operating income by 29 cents per share. With about 32.8 million shares outstanding, that suggests a settlement of $9.5 million. DivX sued Yahoo in November, alleging the Internet search engine company had backed out of a two-year deal on toolbar distribution reached in September 2007.

Bruce V. Bigelow was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Follow @bvbigelow

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