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Yahoo ready to tool with DivX

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Yahoo has a distribution agreement in place with DivX that will offer the Yahoo Toolbar and a Yahoo-optimized version of Internet Explorer 7 to DivX downloaders. You’ll have to wait until November for that, though.

The software offered by Yahoo will replace some third party software currently used by DivX and accompanying its downloads. A Yahoo spokesperson said the deal should kick off in early November.

DivX will get the whole toolbar treatment, with Yahoo adding custom buttons for the video tools site, and for Stage6.com, an online video community utilizing the DivX technology.

For anyone who thought the closing of Yahoo Podcasts may have signaled a departure from the previous Yahoo regime’s fascination with the entertainment industry, the tie-up with DivX could be a harbinger of more of that. Yahoo exited their deal with Al Gore’s Current Network, and rumors of Yahoo TV’s possible demise have been heard a few times.

What if Yahoo decided that DivX would be a great partner to handle video for them? That would let Yahoo shift away a little more from entertainment services and put more resources behind search, advertising, and their publisher network.

Yahoo ready to tool with DivX
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