Linden Labs Purchases 2 Commerce Start-Ups

By Alexander Toldt
16:23, January 22nd 2009
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Linden Labs Purchases 2 Commerce Start-Ups

Linden Labs, the company which created virtual world Second Life, subtly purchased two start-up companies that had built e-commerce marketplaces on its platform. Linden Labs reportedly intends to combine the Xstreet SL and OnRez into the "Xstreet SL platform," in order to trade the virtual goods in Second Life.

The financial details of the deal were not disclosed.

The move is a future source of income for Linden Labs, which will have their percentage out of each sale that is being operated. The virtual goods are a $1.5 billion industry, the company said. The new market place will help Linden Labs regain the mass attention by offering the residents the prospect of trading outside the environs of Second Life.

“Our goal is to make the Web marketplace a wonderful complement to in-world shopping and a great benefit for all residents,” the company said in a statement.

Xstreet SL and OnRez are selling clothes for the virtual avatars and items for decorating spaces inside Second Life. The move gives Linden Labs a higher level of control over some goods sold in Second Live. Until now, the company was earning money by charging for space on its servers and for “land” in the virtual world it created.

Linden Labs said it decided to purchase the two companies because they are the two oldest, most well-known and successful” sellers inside Second Life.

Xstreet SL and OnRez were started by early players of Second Life.



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