i check on the the venture capital index for Linden Lab from time to time as one measure of the Lab’s success. LL affects OpenSim, especially for viewers, and will be the virtual world leader for some time to come
the index has been pretty flat for the six months since they had an 8% drop last August (my past posts)
Sharespost evaluates many other private companies and has seen lots of activity with facebook lately. with Linden Lab being a relatively small player (compared to facebook) i don’t imagine they spend much time analyzing Linden Lab but they do make mention of the aquisition of LittleTextPeople
when a company aquires another one, the revenue of the aquired company is added to that of the parent company. in the US that means if an $80 million dollar company buys a $20 million dollar one, their new revenue figure is $100 million (regardless of aquisition costs)
so it surprised me that there was no increase in the venture cap index for LL and that it actually dropped 2.18%!
indexes are pure speculation – just like the stock market is all speculative – and you should not feel like the sky is falling. but, like the real stock market, that speculation and going up and down does impact real lives, home values, quality of living, and the overall economy
for virtual worlds, a drop in Linden Lab’s value means very little to you and me, but there are people who pay attention to these indicators and base decisions partly on them. maybe it’s a bean counter at the Lab, a larger company looking to aquire something like Linden Labs, or other buying decisions by the Lab itself
either way, take it with a grain of salt =) *runs screaming in circles with hands in the air*