San Diego-based DivX and Yahoo announced this morning that DivX will distribute a co-branded version of Yahoo's Toolbar and a version of Internet Explorer 7 optimized for Yahoo. Financial terms of the deal were not disclosed. The companies said that the offering replaces third party software which was previously distributed by DivX. As part of the deal, the two companies said they will create links on Yahoo's Toolbar to DivX and its Stage6 online video sharing site.