Linden Lab cap index drops 2%


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)

linden lab sharespostSharespost 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*

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written by Ener Hax

March 8th, 2012 at 9:53 am

posted in second life,virtual worlds

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22 comments to 'Linden Lab cap index drops 2%'

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  1. […] More imaginary numbers that look bad […]

  2. Yes, they are indicators, which is what leads to the speculation. A drop after acquiring an additional revenue source? What DOES that indicate?

    Currently, if you Google LittleTextPeople you get 125,000 hits with the top 12 returns being about LL’s acquisition. There is very little to be found about LTP. LittleTextPeople is a game studio that specializes in text-focused gameplay. And that is just about all I can find about it.


    Ummm, text focused gameplay for a 3D world? Does this indicate that LL is shifting their focus from 3D social networking to text oriented gaming? Or are they going to have people in a 3D environment follow a narrated adventure? Doesn’t that sound like a huge step BACKwards? Is LL planning on moving from the social aspects of SL? On the other hand, it is a game studio, so perhaps LL is going to shift from providing a social environment to a highly interactive game. Which means they would have to compete against such heavy hitters as EA Games and Blizzard.

    One can only speculate about what is indicated.

    Sarge Misfit

    8 Mar 12 at 12:33 pm

  3. great speculation Sarge! your idea of a game following a narrated adventure sounds interesting to me

    same search results for me, i couldn’t find anything about LittleTextPeople, maybe it’s a friend needing money? beats me . . .

    Ener Hax

    8 Mar 12 at 1:02 pm

  4. I used to read those ‘interactive’ adventure books years ago. You read a bit of the story then it asks “if you do this, got to page A, if you do that, go to page B” and so your adventure moves along. That is about all I can imagine LTP doing. And how that might be used by a virtual world company is wide open to imagination.

    You know, as big and active as my imagination is, I cannot picture a funny graphic of what the offspring of a 3D social networking platform and a text adventure game studio might be …

    Sarge Misfit

    8 Mar 12 at 1:51 pm

  5. Sarge: A mongrel. But they are healthy, no inbreeding :]


    8 Mar 12 at 2:32 pm

  6. Was Little Text Peeps a revenue generator?

    I’d gathered they were just a think tank looking for a product, not yet producing anything.

    In other words, negative revenue.

    Acquiring them was really just “giving some folks we know full time jobs” than an acquisition of a company with product. Hiring folks? Well, until those folks start producing, adding staff naturally is a revenue drop.

    Pussycat Catnap

    8 Mar 12 at 3:38 pm

  7. very true Pussycat, if the company was not generating revenues yet, it would have no impact and maybe it’s the talent they want

    all i know is that i am not a $70 million dollar a year company like Linden lab and i don’t know better – if i did know better, then we’d be talking about Ener Land and not Second Life!!! =)

    Ener Hax

    8 Mar 12 at 4:01 pm

  8. I can see uses for a text game engine in VWs. Could certainly be used in RP sims where there are quests and the like, the incorporated game engine could send out script messages/commands to huds and other scripted objects to further the quest..lots of little things like that which would make a text game engine quite a catch.


    8 Mar 12 at 8:04 pm

  9. Also, with a text game engine incorporated on the server side, I can see the possibility of scripts sending messages/commands to the server itself to achieve results on the server side.


    8 Mar 12 at 8:12 pm

  10. The Myriad Lite RPG System already ahs that, ELQ. It includes an adventure “machine”. However, the only text used is what the object or NPC says to the adventurer, which the owner includes in the scripts. And that is by far nothing like what LTP should be capable of.

    But, that doesn’t mean that it couldn’t be used to add much more dialogue and variety to a quest or adventure. Perhaps LL will add a new set of script commands to initiate such a text-dialogue. Hmmmmm …. misleading rumours overheard in a club …. an NPC that delays you with a long winded story about Aunt Ethel’s talking bunions …. yes, I can see all sorts of twisted uses for such a setup :-D

    Sarge Misfit

    8 Mar 12 at 8:15 pm

  11. LOL Sarge, actually I was talking more about LTP making commands based on decisions made inworld by the agent – since all script commands are text, it’s an obvious use case.


    8 Mar 12 at 8:33 pm

  12. *laughs* I should’ve got it since the thought about scripts being text DID occur to me :-D

    Sarge Misfit

    8 Mar 12 at 10:08 pm

  13. Graham Mills

    9 Mar 12 at 6:46 am

  14. @graham Maybe they will patent that.


    Breen Whitman

    9 Mar 12 at 8:18 am

  15. The HONOR system looks to be focused on the specific needs of the education community. I’ll stick with Myriad since its released under Creative Commons.

    Breen, that patent application is scary!! Has it been approved yet? If not, time to be sending prior art to the Patent Office

    Sarge Misfit

    9 Mar 12 at 9:01 am

  16. Thanks for mentioning that patent application, Breen. I checked it out and it hasn’t been approved. Yet.

    Just posted a short piece about it

    Sarge Misfit

    9 Mar 12 at 9:34 am

  17. @sarge Shenlei has applied. I think Google just somehow shows the document in their wizbang patent search engine.

    Shenlei is significant in Opensim. And JustinCC cut his teeth there before moving on to Opensimulator proper.

    This begs the question, is it prudent to do this perhaps for the good(and protection) of Opensim.

    WWJD. What would Justin do.

    Breen Whitman

    9 Mar 12 at 1:28 pm

  18. Thanks, Breen, I’ll update my posting. And its still a scary thought when you consider that everything we do in the metaverse, the building and designing etc, is exactly what is described in the patent application.

    Sarge Misfit

    9 Mar 12 at 2:50 pm

  19. get outta here on the patents!!! for real? i need to investigate that a little, sheesh!

    *patent pending on storage devices that plug into USB ports and can be removed with the left hand on full moon nights*

    Ener Hax

    9 Mar 12 at 3:40 pm

  20. And none of it will matter in the long run for one big reason: it’ll still cost people about 300 bucks a month for their sweet little text adventure – or any kind of adventure, on top of whatever downloadable software they roll out to accommodate it that isn’t going to be free regardless.

    Once you see the reality of every penny you spend being laid to waste and the content purchased held hostage, it takes a huge bite out of your enthusiasm for what LL/SL has to offer, rendering it pointless. Their roleplay game they pushed out sounds like great fun right up to the point it turns into WOW or Everquest and you want to upgrade something that inevitably costs money…then nope. The virtual pets was cute and sweet right up to the point you have to buy “pet food” and accessories…then nope.

    Imagine the reality of it that hasn’t gone away, nor is it being addressed on the front pages anymore. Buy x item, have it delivered inworld via the marketplace.

    Then try using that nifty useless search feature to find a spot to *rez the box* so you can open it to get whatever you bough. Once you got it, if you can’t wear it, then you really wasted time and money because you can’t do anything with it. Everything’s all closed off, no build/script rights unless and until…dah dah DAAAHHH…you got your own land. So, in order to play with those cute little kitty cats you picked up for a buck, to feed and breed them, you’ll end up spending some real money for a spot to play with virtual pets (or whatever).

    Unless LL is about to veer away from land sales, then everything it does is designed to lure people in to ultimately be “locked in” so they buy expensive land…and those people will for a time, until they hear about OpenSim (and Kitely) and other places where they get more bang for their buck. And that’s when the real ugly reality sets in that they wasted a lot of money on stuff they can’t pack up and take with them…

    I don’t see LL playing the right ballgame anymore. This all sounds like desperation market gimmicks than sound business solutions or acquisitions.

    Virtual Clover

    9 Mar 12 at 11:05 pm

  21. a nice rant Virtual and one that i have had for a few years now! also a conclusion that i agree with – LL is rolling out a gimmick and not interested in listening to many passionate and bright users – many of which are now gone or will leave soon . . .

    Ener Hax

    12 Mar 12 at 8:51 am

  22. […] thursday i posted about a 2% decline in Linden Lab’s capital index by SharesPost and mentioned that Linden Lab […]

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