UPDATED! Linden Lab To Be Acquired By an Investment Group Led by Randy Waterfield and Brad Oberwager

Please note that I am taking the entire month of July off as a self-imposed vacation from the blog so I can focus on my other work, except for sponsored blogposts, and major breaking news such as this. See you in August!


Randy Waterfield (left) and Brad Oberwager (right). Source: LinkedIn profiles


This evening, Linden Research (better known as Linden Lab, the makers of Second Life) dropped a bombshell press release: the small but profitable privately-held company which has been run pretty much independently since it was founded by Philip Rosedale in San Francisco in 1999, will be acquired by an investment group.

SAN FRANCISCO, July 9, 2020 — Linden Research, Inc. announced today it signed an agreement to be acquired by an investment group led by Randy Waterfield and Brad Oberwager. Closing of the acquisition is subject to regulatory approval by financial regulators in the U.S. related to Tilia Inc.’s status as a licensed money transmitter as well as other customary closing conditions. Upon closing, Mr. Waterfield and Mr. Oberwager will join the Board of Directors of Linden Research, Inc.

“We’re excited for this new chapter to begin. We see this as an opportunity to continue growth and expansion for Second Life and our money services business Tilia,” says Linden Lab CEO Ebbe Altberg. “We’re grateful for the ongoing support from our community, business partners and investors. Now more than ever, there is increased recognition of the value and utility of virtual worlds to bring people together for safe, shared, and social online experiences.”

“Both the company and its virtual world community have a unique culture and creative energy that remain important to the long-term success of Second Life,” says Brad Oberwager. “There’s a bright future for both Second Life and Tilia and we’re excited to help fuel these growth opportunities.”

“Since its inception 17 years ago, Second Life has been a pioneer in the concepts of virtual societies, land and economies,” says Second Life founder Philip Rosedale, who is now CEO of High Fidelity. “I’ve known Brad for 14 years personally and professionally, and I’m confident he will bring his passion and proven strategies to help Linden Lab achieve new heights in distribution, scale, and quality while remaining true to the original vision, creativity, and community that makes Second Life unique and special.”

Mr. Oberwager has spent his entire career in technology and consumer-focused companies. Mr. Oberwager is the founder and Chief Executive Officer of Jyve, a Silicon Valley based technology company. Prior to Jyve, Mr. Oberwager owned Bare Snacks, acquired by PepsiCo. Mr. Oberwager is an advisor to several technology start-ups and sits on the boards of several technology and CPG companies.

Mr. Waterfield is the Chairman and CEO of the Waterfield Group. The Waterfield Group has invested in over 100 technology, financial, insurance, bank and other companies.


One commenter on the news over at the RyanSchultz.com Discord server noted:

One of the new investors in the group that bought Linden Research [Linden Lab] is Randy Waterfield, the Wookey guy.

Wookey, of course, is the company that bought Sansar from Linden Lab earlier this year, after the platform went through two rounds of staff layoffs and almost folded.

What does all this mean? Damned if I know! I’m quite sure many Second Life users will be wondering what it all means as well. New owners could mean a shake-up at Linden Lab, and we all know how much some Second Life users hate changes (witness the fuss last year over Tilia).

Of course, it might also be the best thing to happen to the platform, a new opportunity (with fresh investment!) to take it to the next level of growth.

Interesting times, indeed! Stay tuned.

UPDATE 11:08 p.m.: The news took many by surprise, including the team who work on the most popular Second Life viewer program, Firestorm, who tweeted:

Please don’t ask us, this was news to us too.

Longtime SL blogger Inara Pey reported:

I reached out to linden Lab on finding out the news, but was informed the company has no further comment on the acquisition beyond the press release.

However, given that the acquisition will see Mr. Waterfield and Mr. Oberwager joining the board, I would anticipate that – given the nature of acquisitions – it is unlikely there will be any immediate visible changes to Linden Lab, Second Life or Tilia Inc., and, and the company will likely to continue to operate in a “business as usual” mode with regards to both Second Life operations and the community for the immediate future. That said, there will likely be a lot of speculation as to the future of SL, together with concerns / fears as to what the longer-term future might be.

While it is purely speculative on my part, I would hazard a guess that the acquisition will take into consideration the increased interest Second life has witnessed over the last year(ish), and particularly as a result of the SARS-CoV-2 pandemic, and will see in inflow of cash for the company that will allow it to (hopefully) meet its immediate goals with both Second Life and Tilia Inc., and allow both platforms to continue to be developed.

And (of course!) there is an ever-growing comment thread over on the Second Life Community Forums.

UPDATE July 10th, 2:08 p.m.: In response to the intense level of speculation on the above-mentioned comment thread on the SL community forums, Brett Linden, Senior Director of Marketing for Linden Lab, made the following statement:

Good day, all!

Just jumping in to respond to a few of the comments…

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. 

And, in response to a question about when more detailed information would be forthcoming about the acquisition, and when the new owners would address the Second Life community, Brett said:

Great question! We look forward to being able to share more as soon as we can and I know that Brad is eager to meet the community as we get closer to the closing/approval date. 

Sansar Editorial: Where Is the Marketing?

The New Sansar Update Load Screen:
A Focus Squarely on Live Events

Why did Sansar fail?

And no, I do not consider Sansar a success, despite the most valiant efforts of the remaining staff who are still working on the platform, and the COMETS, a small group of hard-working volunteers creating and promoting events. Linden Lab themselves did not consider Sansar a success. Why else would the company sell the money-losing platform to Wookey, a company known for buying other companies which have fallen into financial distress, in a last-ditch effort to turn some sort of profit out of it?

What disturbs me most about the change in ownership is that Wookey does not seem to be doing anything different from what Linden Lab has done. The focus remains squarely on live events, but so far, I do not see a whole hell of a lot of those happening, aside from the Monstercat: Call of the Wild series of concerts (okay, there was also a Virtual Rave Prom last Friday, with DJ Yultron).

If this is supposed to be a live events platform, where are all the (NON-volunteer driven) events? Where are the performers? We should have had some announcements by now, surely. During the change in ownership, Sansar lost a lot of those events, and I do not see a lot of new events to replace those that were lost.

Tong Zou, a YouTuber who recently posted a lightly-edited one hour and 40 minute video of his adventures exploring Sansar, had this to say at the very end of his video, after finding Sansar essentially empty in his travels, and only finding a handful of other avatars hanging out at the Nexus:

I mean, this is pretty much the only players on Sansar right now, which is really sad, because in my opinion, Sansar has the best worlds out of any social VR app, but they have the least people, so what the heck? Why do AltspaceVR and VRChat have more people than here, I don’t get it. Not enough marketing or something, I dunno. This is all the people in Sansar. Give me a break. Linden Lab has got to do a better job of promoting this game. This is just sad. This game deserves better than this. This app deserves better than this. C’mon, there only about 10 people here across the entire app.

Tong Zou hits the nail on the head when he says that the company (no longer Linden Lab, but Wookey) needs to actively promote Sansar. If the Wookey-owned Sansar is doing any marketing or promotion, I sure the hell am not seeing any evidence of that. And if they are hoping that word-of-mouth advertising is going to work to attract people to Sansar, they are badly mistaken.

Seriously, what the hell are they doing? From my perspective, Sansar is simply drifting aimlessly. Just because you’ve built a social VR platform that allows for the creation of beautiful worlds, and allows for customizable avatars, and supports a marketplace for content creators to earn money, you can’t just set it out there, among all the current and upcoming competition (e.g. Fortnite Party Royale, Facebook Horizon), and just expect it to grow on its own, without promotion. There’s simply too much else out there competing for attention.

For example, Oasis, the Chinese-based social VR platform I wrote about a while back, has recently done promotions with a number of smaller YouTube vloggers to promote their platform (here, here, here, and here are four examples). I can’t remember the last time I came across a sponsored YouTube video for Sansar.

Where is the marketing push? Sansar isn’t just going to magically sell itself.

Linden Lab CEO Ebbe Altberg: Second Life Has Seen a 50% Increase in Regular Monthly Users Because of the Pandemic

Second Life’s new logo (more info)

Last year, I wrote:

In the December 2017 issue of The Atlantic magazine, Leslie Jamison wrote an article about Second Life. The webpage for that article has the original article title, Second Life Still Has 600,000 Regular Users (which you can check for yourself by doing a Google search):

However, it would seem that Leslie’s editor at The Atlantic wanted a somewhat punchier title, and so we have The Digital Ruins of a Forgotten Future, which shows up when you click on that link. (I’m pretty sure that Linden Lab is less than pleased with that particular editor.)

There’s a quote from that article which is, to my knowledge, the most up-to-date statistic we have about how many people still use Second Life: “Of the 36 million Second Life accounts that had been created by 2013—the most recent data Linden Lab will provide—only an estimated 600,000 people still regularly use the platform.”

“Only” 600,000? That still makes Second Life, far and away, the most popular metaverse platform, at almost 17 years old. Even popular newer platforms like VRChat don’t have that level of usage. (Note I am talking specifically about open-ended purpose social VR and virtual worlds here, not games like Fortnite which are slowly expanding into non-combat, social environments.)

And yet, somehow, the mainstream news media continues to portray Second Life as quaint, outdated, and “forgotten”. In case you doubt that 600,000 figure, it was supported by statistics released by Jessica Lyon, the founder, CEO, and project manager of the Firestorm viewer project:

Let’s get this out of the way first:  542,967 unique users across 9.9 million sessions spending 17.7 million hours logged into Second Life on Firestorm over the last 30-day period. 

If you assume that Firestorm has 90% of the SL viewer market (a reasonable assumption), that still works out to about 600,000 regular monthly users (that is, people who sign into Second Life at least once a month).


Well, in a May 22nd, 2020 VICE story about the boom in business in virtual worlds during the pandemic, Linden Lab CEO Ebbe Altberg (the makers of Second Life), had this to say:

“The Second Life community, which now has about 900,000 active users monthly, hosts hundreds of events daily,” Ebbe Altberg, the CEO of Linden Lab, the creators of Second Life, tells VICE. Altberg reveals that the most regularly attended virtual events include live music performances, shopping fairs, fan fiction conventions, book and poetry readings, academic lectures, fashion shows, and art exhibitions. “Events in Second Life can be held spontaneously or with careful planning,” says Altberg. “We have an events calendar and destination guide that helps the community discover what is happening at any given moment. Inside the Second Life Viewer, many communities also form chat groups that allow for like-minded people to stay informed about the latest events.”

Linden Lab does not often reveal usage statistics, so this is noteworthy. What is also noteworthy is that the number of people who log into Second Life at least once a month has jumped from about 600,000 to approximately 900,000—a 50% increase!

Even though Linden Lab has been trying mightily to promote their virtual world and increase the number of people using Second Life for well over a decade, the company has been caught flat footed by this significant increase in usage (be careful what you wish for!).

In fact, they recently announced that they were unable to respond to a surge in demand for Second Life regions (better known as sims, which is short for “simulators”):

Well, this is awkward…

Due to the ongoing public health crisis, we’ve experienced an unprecedented surge in demand for new Second Life regions. While we are thrilled by the heightened interest, the increased demand has consumed our available inventory of full regions and homesteads (there are still many parcels available on existing regions, both on the mainland and from private estates). 

We are committed to maintaining (and improving) the stability and performance of Second Life. So while we are very gratified that we can be of help to people in these trying times, unfortunately, our current server systems cannot accommodate unlimited growth without adversely impacting that stability and performance. This means that region inventory in Second Life will be extremely limited and may not be readily available until early fall.

As we’ve discussed previously, Second Life is in the process of migrating from our existing dedicated servers to a cloud hosting service. That migration has already moved a number of the most important services and databases, but we are not quite ready to host simulators in the cloud. We have a crack team working on that and are making lots of progress, but there are significant changes needed to make sure that we can provide the performance, stability, and security required. When that process is complete we will have a nearly unlimited region capacity, but until then we are constrained by the size of our existing server fleet.

While our migration project has been underway for some time, even our most optimistic business projections did not anticipate a surge of the magnitude we have seen in recent weeks for additional regions. While we planned for growth driven by improvements to Second Life and other factors, we didn’t expect demand to be created by a global pandemic.

As a result, we are in the unfortunate position of hitting the maximum capacity of our “old” servers until the “new” cloud servers are fully operational.


Of course, Second Life is not the only metaverse platform to see an increase in business because of the global public health crisis. Many other social VR and virtual worlds have seen an increase in use, and they have been receiving many inquiries from educational institutions, businesses, and convention organizers. For example, the Balticon science fiction and fantasy convention, taking place this weekend, set up a virtual convention meeting place in Second Life.

Sensing a business opportunity, the pandemic has led to a sharp increase in the number of companies offering platforms supporting remote team work, or (as I prefer to call them) YARTVRA. (This last link will take you to all the blogposts I have written about the remote teamwork marketplace to date.)

And this is not going to be a temporary situation, either. In a best-case scenario, we are going to have to wait 12 to 18 months for a vaccine, which means that social distancing policies, lockdowns, and quarantines are going to be implemented, off an on, for the foreseeable future by governments around the world. We could well see successive waves of coronavirus infection well into 2021, or even 2022!

The coronavirus pandemic has created an unprecedented business opportunity for social VR platforms and virtual worlds. As the saying goes, make hay while the sun shines!

Photo by Luca Huter on Unsplash

Linden Lab Subsidiary Tilia Pay Lands a New Client: The Mobile Property Trading Game Upland

Image taken from the Tilia Pay website

Linden Lab recently made an announcement on their blog that their wholly-owned subsidiary, Tilia Pay, will be handling all U.S. dollar transactions in Second Life, starting May 26th, 2020. This is comply with newer, much more stringent American laws regarding economies in games and virtual worlds, to prevent potential fraud and money laundering.

Linden Lab has invested quite a lot in the past few years to upgrade their financial systems to meet these new regulations, and they decided to make the savvy move to sell their well-developed virtual economy services to other platforms.

It is no surprise that former Linden Lab platform Sansar (now owned by Wookey) is one of Tilia’s customers. But it is somewhat of a surprise to me that among those new customers is a blockchain-based mobile property trading game called Upland, which I had never heard of before. Here’s a brief Vimeo promotional video:

Now I think it is interesting that a game that describes itself as “a property trading game paired with a decentralized economy” would decide to use Tilia instead of trying to create and monitor its in-game economy. Linden Lab might well be on to something here! I can foresee a time when other social VR platforms, virtual worlds, and games might also make the decision to outsource the management of their virtual economies in this way.