(Adds comments from Yahoo addressing the lawsuit.)
DOW JONES NEWSWIRES DivX Inc. (DIVX) filed a lawsuit in California Superior Court seeking damages after Yahoo Inc. (YHOO) cut short its two-year advertising-services agreement.
Digital-media company DivX also said the termination would hurt its 2008 and 2009 results.
DivX Chief Executive Kevin Hell said the company would aggressively pursue legal action and said Yahoo's decision to breach its agreement, first announced in September 2007, was "unjustified given DivX's fulfillment of its obligations under the agreement."
A spokesman for Yahoo said the company was disappointed with DivX's decision to pursue legal action, adding that the companies had held talks to restructure the relationship.
"We intend to vigorously defend ourselves in court, but will reserve further comment until we've had an opportunity to review the suit," said Grossberg.
DivX said it now sees adjusted earnings for fiscal 2008 of 49 cents to 51 cents a share on revenue of $90 million to $92 million, down from its view last month of 58 cents to 60 cents a share on revenue of $95 million to $97 million.
Hell said the company would focus on driving its core licensing business and "diligently pursue alternatives to replace the Yahoo deal and continue to grow our software distribution business."
DivX shares were down 11.4% to $4.90, while Yahoo's shares were flat at $10.63 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com;
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(END) Dow Jones Newswires
November 17, 2008 17:30 ET (22:30 GMT)

Publié le 17 novembre 2008 Copyright © 2008 Dowjones