Good speculative post with decent analysis and conjecture by Prokofy Neva aka Catherine Fitzpatrick on Linden Lab's financials (Linden is open about a lot of things other than its financials ...); "A Nation With $36 Million Annual GNP" http://secondthoughts.typepad.com/second_thoughts/2008/04/a-nation-with-3.html
In public group chat today in Metanomics, a group of 779 people interested in attending the Metanomics series organized by Prof. Robert Bloomfield of Cornell University, Zee Linden (John Zdanowski, CFO of Linden Lab in real life), made a number of quite interesting statements that haven't been publicized before: In response to several queries from concerned residents fearful of media and blog rumours that LL is going under or going to IPO or merge, he said Linden Lab had a free cash flow of $6 million in Q1 [9:14] Zee Linden: We had over $6m of free cash flow in the first quarter...I don't think we're going anywhere...
The back-of-the-envelope figuring for LL's revenue always starts from the premise that it has $60 million in income from tier alone, figuring that 16,000 islands currently (private islands make up more than 75 percent of the grid) at $295 a month in tier equals $60 million. That's not even counting then the figures for sales at $1695 for islands, and as much as $3500 or $4000 for mainland sims with $195 monthly tier. LL also makes money from special licensing fees (the Sheep, in order to stage the CSI event; and IBM to run SL behind a firewall).
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