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Originally Posted by Dnate Mars  Just a random thought, could it be that the investors at LL are getting antsy? Maybe that is why all these changes are happening. Perhaps an IPO or a buyout is on the way? |
You're not the first to speculate on this, except I don't see an IPO so much as some stock restructuring; I've seen small firms do this when they have a significant equity debt to initial investors that they have dim prospects for repaying. Using some accounting legerdemain that is not unlike turning all Ginko shares into WSE shares, a firm can give some sort of augmented capital loss to to their investors. Having any increases to the valuation of the company helps this scheme in the same way it does an IPO, so you get your lawyers to write a letter claiming whatever intellectual property they can imagine and you boost the valuation some amount. The beauty of it is they don't actually have to enforce the IP claims because by the time the conversion is complete, it isn't Linden Lab any longer but Linden Lab, a subsidiary of Linden Development, Inc. That said, I really don't understand how that trick works, but I think it robs some Peter to pay some Paul.
No investment firm is going to back an IPO of a firm whose prospects are dim; it is embarrassing and costly to the firm. Unless LL is hiding some outrageously good numbers behind their backs, Phillip has stepped aside so they can install one of these stock magicians in his place.
But yes, the investors are antsy and get a little miffed when they have almost nothing to show for their investment 5+ years later.