53.7 F
San Diego
Thursday, Mar 28, 2024
-Advertisement-

DivX Sues Yahoo, Forecasts Lower Earnings

DivX Inc., a San Diego maker of video compression software, said Nov. 17 it filed a lawsuit against Yahoo, alleging the Internet services provider breached its two-year advertising contract.

DivX said it is aggressively pursuing legal action to ensure Yahoo honors its obligations to the contract it entered into in September 2007.

The suit was filed in Santa Clara County Superior Court.

Because of the reduced revenue caused from the breached contract, DivX said revenue this year will finish in a range of $90 million to $92 million instead of an earlier forecast of $95 million to $97 million.

Traded on Nasdaq under DIVX, shares closed at $4.39 on Nov. 19, and have ranged from $4.30 to $18.31 over the past 52 weeks.

, Mike Allen

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-