Divx Brings Off Court Settlement with Yahoo

Divx Brings Off Court Settlement with Yahoo

Divx has decided to settle its Yahoo lawsuit, bringing home a huge $9.5 million. The firm alleged Yahoo of neglecting its two-year advertising services agreement. 

 

Divx Executive Vice President and CFO Dan Halvorson announced, "We are pleased to have this matter resolved."

 

Halvorson then said, "The litigation settlement will increase our operating income in the third quarter of 2009. As a result, we have upwardly revised our  GAAP earnings guidance for the third quarter by $0.29 per diluted share, or $0.17 per diluted share net of related taxes, and now expect GAAP earnings to be in the range of $0.10 to $0.12 per diluted share."

 

Yahoo has been trying every aspect to reduce company spending and the settlement fees come as a big blow to the companies financial status. However, Yahoo's agreement over the settlement indicates it was way better than having the lawsuit progress in court.