Yahoo and DivX have formed a global agreement to offer consumers who download DivX video software tools a co-branded version of the Yahoo Toolbar along with a Yahoo tools loaded version of Internet Explorer 7.

The new Yahoo partnered DivX tools will launch in November 2007 and will replace the Google search tools which were distributed by DivX beforehand.

In addition to the distribution agreement, Yahoo! and DivX will cooperate to create links on the Yahoo! Toolbar to DivX.com and Stage6.com, a popular online video community that utilizes DivX technology (wonder if this will lead to new developments in DivX videos and video downloads via Yahoo Video).

“Our partnership with DivX gives Yahoo! the ability to offer our services to its growing global community, providing them with one-click access to the Yahoo! network. The partnership will also enable Yahoo!’s users worldwide to discover and benefit from the video technologies that DivX has to offer,” said Vish Makhijani, General Manager and Senior Vice President, Yahoo! Search.