Ebbe Altberg & Other Linden Lab Team Members Answer (And Don't Answer) SL User Questions About the Company's Acquisition

As promised, here's the questions I asked Linden Lab after they announced the imminent acquisition of the company:

• How will this acquisition change SL specifically? Will management or staffing change at all (layoffs, etc)?
• Will it create a cash injection into Linden Lab?
• Since the acquisition is led by the Waterfield Group which specializes in buying profitable but slow growth companies, is it fair to say Linden Lab is in that category?

Spokesman Brett Linden replied by saying this:

"We aren't 'formally' commenting beyond pointing people to the official announcement."

And as legendary journalist Bob Schieffer once told Philip Rosedale and I during dinner (but that's another strange story): "When someone refuses to answer, that in itself is an answer."

However, Brett added, "Grumpity and I have answered a few questions on the forums - but the key message is that this is a good thing for the Second Life community and operations are status quo. Here is what I said on the forums:"

A few folks are speculating that this is the end of SL and nothing could be further than the truth. Any talk of dismantling or radically changing the fundamentals of SL that we know and love is inaccurate. While we can't get into specific details about the deal itself, I want to emphasize the fact that this keeps Linden Lab as an independent venture led by two investors who have a great deal of awareness about what SL is and isn't. They are excited to join and help us grow both SL and Tilia while also respecting and recognizing the needs and sensitivities of the existing culture and community.

Brett also notes that Linden Lab CEO Ebbe Altberg has been on Twitter taking on all questions posted to him there -- here's some highlights:

 

Responding to the idea that Linden Lab's new owners would dismantle the company:

"Uh, that’s not what any motivated operator of a profitable business world do. That would be like throwing away money for no reason. We’re excited."

Also: "We’re investing a lot to move all our [SL] infrastructure to the cloud as we speak. A few people start planning and laying the foundation, then more and more people join to port everything. Can definitely take years. We’re closing in on the end of the process. Goal is by end of year."

But interestingly, answering Daniel Voyager who asks, "Will Second Life and Tilia be sold separately in the next few years?"

Answer: "Too early to speculate. But Tilia is signing up and on-boarding more and more customers. It's a unique and very relevant service."

More Ebbe answers here, which may be the only public answers we may get any time soon.

Comments

[Joey1058]

I have my own pet theory that goes along the lines of more love being shown to Tilia as the main profit generator, and SL getting it's MUCH needed engine upgrade. Tilia has shown that it can easily stand on it's own. And frankly, although I love the Enjin.com ecosystem, I feel that Tilia can easily carve it's own place in the crypto and gaming community by brand recognition alone. Say what we will about LL, they've stood the test of time and taken their lumps and persevered.

[Petey]

If Eggbert is out of the picture, probably a good thing.

[Soda Sullivan]

While the headline sort of makes you shudder and think the worst, the more you read about this, the more it seems like a potential good thing for SL and definitely for LL.
The fact that Rosedale claims to have a decades long familiarity with Oberwager is promising. Also, the claim that Oberwager has no history with online gaming does not seem to be totally accurate. Angellist at least shows him to be an angel investor to Telltale games back in 2006.(He is also apparently really good with fruit cups.)
I think the genera consensus that this purchase is centered around Tilia is probably accurate. Maybe the will work to spin off Tilia and generate more revenue and share a few morsels with SL - which would probably be a lot more than LL is investing in SL now.
I guess a lot will depend on how Altberg and Co. respond to this acquisition, which is something they have clearly been wanting. Will they leverage the success of Tilia to make SL more successful. Or will the do like Yahoo did to Flikr and just let it die on the vine as they try to mil every dime out of it?
I find it hard to believe that Rosedale would endorse anything like that.

[Susan Wilson]

Both Tilia and Second Life are profitable and the Lab will save money moving to the cloud. Adding to the board means splitting the profits further, regardless of the initial investment. Why would they do this? Perhaps because they are considering a new venture. Starting a new venture on their own would be expensive, but if profits on the new venture are considered guaranteed, the investment could get them started and everyone on the board would make more money. I suspect we will soon see a third name associated with The Lab to go along with Tilia and Second Life.

[Adeon Writer]

> SL getting it's MUCH needed engine upgrade

Don't count on it.

Maybe they'll give the servers a makeover. But the viewer itself is decades of legacy code. Thinking they have a total re-write under their hat is a pipe dream.

[Cathartes Aura]

Wonder if the Owners of the Waterfield Group know about the "Adult" side of SL? Virtual Penii? Lady Flowers? Hucows? BDSM? Pony boys/girls? Furries? Escorts? Etc..

And if not... Should we tell them? Or keep it a secret... Shhhhhhhhhhhhhhhhhhhhhhhhhhhhh! LMAO!

Think they'd try to eliminate "Adult" Activities if it meant downward pressure on "their" bottom line? Or made them a laughingstock on Wall Street? Smiles...

This may or may not be a good thing... Only time will tell.

But given the track record of Hedge Funds/Wall Street Looters,. over the past 30-40 years, it doesn't look good for LL/SL. Normally "they" strip companies of cash and assets and loot them until there's nothing left.

But one thing... That's a positive. Is that the original VC's got cashed out and are hopefully gone now. "They" ran SL into the ground for over 10 years. Good f'king riddance..

This ole Carrion Eater flies off in search of other stinkier, rotten, putrid meals for now... But keeps an eye on SL given it's over 10 year disastrous track record. ;)

[Dylan Rickenbacker]

"Nothing could be further than the truth" :-D Of course it's a typo, but a rich one.

[Wagner James Au]

LOL well that's what he wrote, that was a direct and unedited copy/paste.

[Alicia]

"Uh, that’s not what any motivated operator of a profitable business world do. That would be like throwing away money for no reason. We’re excited."

Ebbe is a fool for saying that. Once this new group looks at SL with a fine toothed comb, and they most definitely will as they will want to know exactly what they're dealing with, they're most likely to scrap SL and go strictly with Tilla. They will most certainly not want SL tainting their portfolios due to all the adult, sexual and pedo content it has. Not only that, but all the copyright infringement (Marvel/DC/Anime/Disney/Louis Vuitton and other fashion brand logos/Major Sport Leagues like MLB, NBA, NFL/etc.) going on as well as the DMCA problems creators have to deal with (IE - Genus Project getting slapped with a second DMCA in as many weeks). In fact, if any of those companies I just listed found out that SL was allowing copyright infringement to occur, there would be cease and desist letters, or even lawsuits against LL as if it were the end of the world.

It is going to happen folks, this group is going to look at their acquisition with a microscope (books, SL, Tilla... everything) and ultimately focus on Tilla. Ebbe can deflect all he wants, but if I know most groups like the Waterfield Group, they're main goal is asset liquidation.

[Ghoste]

Alicia is right. Though I would say the new group would like to see how far they can go to strip out SL and see how many idiots continue to pay.