Yahoo! (YHOO) displaces Google (GOOG) with DivX deal

Looks like Yahoo, Inc. (NASDAQ: YHOO) has put yet another feather in its cap, as the internet company will have its web browser toolbar distributed along with video player software from company DivX Inc. as of this week. DivX makes a very popular video compression codec technology that is used in millions of downloadable videos.

Yahoo!'s toolbar is how millions of Yahoo! users interface with the company's various offerings every day, since it is always visible and available on a customer's web browser. DivX had worked previously with Google, Inc. (NASDAQ: GOOG) for about two years, and the relationship was apparently still in good standing despite the change to Yahoo!. According to a DivX representative, "We had worked with Google for two years and it was a good relationship. The deal we had with Yahoo was the most attractive to us at this time."

In other words, Yahoo! probably offered more to DivX to be included as a co-brander of every download of DivX video player and authoring software, which is not surprising considering the large moves the Sunnyvale, California has made in the last month to start playing more firmly with internet search leader Google.