For a long time now, i have often talked about potential policy changes at Linden Labs having an impact on the value of DDE's land holdings.
LL has just released this announcement on their Blog.
So, basically, in one fell swoop, the net asset value of DDE has dropped by about 40% - Islands that cost DDE $1675 USD each to buy, could now not even be sold for $1,000USD each. So, obviously, any future plans of DDE to liquidate assets in order to wind down the business are going to have to be rethought.
Yesterday, I would have valued the total estate holdings of DDE at about $42,000 USD. Today, they are worth about $25,000.
I just read the blog post moments ago - and frankly, on the heels of all the events over the last month or so with DDE, I am at a loss.
On the positive side, at this point the tier levels are remaining the same, so the ongoing operations - the revenue and expenses of renting the land - will remain unchanged and DDE will continue to make the same profits as before each month.
However, i will need to rethink the strategy I have in place for the future of DDE - it no longer makes any sense to rush into winding down the business - the logical next step MIGHT be to do some "dollar cost averaging" and in fact to start contemplating further expansion - to reduce the average cost of each sim in DDE, thereby improving the profitability and bringing the cost of overall assets lower per unit. At any rate, it is important that shareholders know what is going on.
To repeat - this does not affect the overall monthly revenue and profit projections for DDE - it just makes the company worth significantly less.
As always, thoughts and comments are appreciated.