Far from a money-losing concern, Stage6 was apparently making DivX millions of dollars. Stage6 required the installation of a player, and along with the installation, users were offered the option of installing a Yahoo toolbar. Apparently, DivX was earning millions from their deal with Yahoo for this. However, infighting among the DivX owners over what to do with Stage6 led to the resignation of the key people running Stage6. Left without anyone competent to take the reins, the site had to be closed down.
The DivX Inc stock has also taken a nosedive. And it’s a pretty dramatic plunge too.