TechCrunch publisher Mike Arrington began writing his high-profile posts exposing the misleading ads carried by Zynga on October 31. Four days later, according to documents filed with the SEC yesterday, Zynga began issuing shares as part of its latest $15 million round of financing that included firms like the gold-standard Silicon Valley shop Kleiner Perkins Caufield & Byers (past investments: Google, Amazon, Netscape, etc.), as PaidContent points out.

Of course, it took until Nov. 6 for video to emerge of Zynga CEO Mark Pincus admitting that some of the ads his company ran were "horrible." But we'd venture to guess that Zynga's investors, now into the startup for at least $54 million, would still have gone forward with their investment even that video emerged earlier. They care no more about Zynga's murky origins than they did about those of Zynga's chief clients like MySpace (born from a spam and spyware operation) and Facebook (which paid $65 million to settle claims it was founded on stolen technology). In Silicon Valley, the sins of the past are regularly washed away by infinite promise of the all-important future.

(Pic: Zynga CEO Mark Pincus, by Joi Ito)

Amid withering press from TechCrunch and other outlets, the Zynga CEO has finally removed scammy commercial offers from his company's online games, like Mafia Wars and Farmville. That's nice. But maybe the whole scandal could have been avoided if he'd taken a less skeptical take on his Harvard Business School ethics class. From his 2006 blog post about the class:

The school had this bullshit 3 week class called 'ethics' which we all took together at the outset of the program - guess it was to make sure we all had at least heard the term a few times and might feel more comfortable even using it...

Pincus goes on to tell how his amoral, investment-banker classmates defended a banker who left a sick Indian man behind to die in order to finish climbing a Himalayan mountain the banker had long wanted to conquer. Pincus accused his classmates of moral bankruptcy and became a black sheep, he says.

He was also aghast when a fellow student got off with a slap on the wrist after he was caught stuffing the ballot box in an election to head the school's Finance Club. Pincus thought he would be expelled or at least suspended for a year.

I'd soo love to know where that kid's career went and what he's doing today. He must be a major leader as he soo gets our system.

Pincus ended his blog post on an optimistic, pro-ethics note, saying that "this century's newest success stories" like Google, Bill Gates and eBay "are about authentic people taking responsibility and serving all stakeholders," i.e. acting ethically, donating money to charity, etc. Despite this conclusion, Pincus soon found himself on a darker path; he was soon doing "every horrible thing in the book to... get revenues right away" at Zynga, he told fellow entrepreneurs at a mixer earlier this year.

Said mixer wasn't the first time Pincus gave up a sleazy vibe; check out the tweets below from entrepreneur and former Valleywagger Alaska Miller. Apparently Pincus' ethics were derailed some time after he wrote that "authentic people" are the bright future of American business. It's hard to know whether to the blame that stumble on Pincus' obvious cynicism toward his Harvard ethics class — or on his failure to cling to his cynical conclusions more tightly through the years.

(Top pic: Pincus, by Joi Ito)

Sacramento-based Kershaw, Cutter & Ratinoff, LLP is looking for people who faced "unauthorized charges imposed on Facebook and MySpace users who participate in social games like 'Farmville' and 'Mafia Wars.'" The firm, which said it has launched an investigation into such scams, specializes in class action suits, among other areas.

Mike Arrington's TechCrunch has posted a series of articles on the issue of sleazy revenue models for online games, exposing the practice of sneaking mobile data subscriptions and pricey "learning CD" packages past players trying to earn online "points." Mafia Wars and Farmville creator Zynga gets a third of its revenue from such "commercial offers," while Facebook in turn gets 10-20 percent of its money from Zynga, according to Arrington.

Zynga has yanked some of its ads; Facebook, in turn, has suspended one of Zynga's smaller games. But there's evidence this issue could have been addressed much sooner. TechCrunch found video (below) shot this past spring in which Zynga's CEO said he "did every horrible thing in the book to, just to get revenues right away."

That sounded bad enough when it was reprinted on a tech blog; imagine how it's going to sound in court.

(Top pic: Zynga CEO Mark Pincus, possibly calling his lawyer, by Joi Ito.)

Sterling's seemingly meandering and occasionally infuriating talk at the annual Reboot digital culture conference in Copenhagen, Denmark this year attracted some notice, originally, but deserves a wider hearing, if only for his contextualization of Steve Jobs and Nicolas Sarkozy as gothic figures and his advocacy on behalf of expensive beds. Luckily, protoblogger Dave Winer recently re-uploaded and linked the talk.

Observers of the social networking wars should listen to Sterling's rundown on "favela chic," excerpted above. Rupert Murdoch, familial overlord of MySpace parent News Corp., is cast as the "remote, distanct, old-school Brazilian tyrant," while MySpace accounts are likened to "huts." Who knows: Maybe when you lose your job, an anonymous space in News Corp.'s online hellscape might start sounding a lot more fun than the prim, proper — and all-too-accountable — playground that is Facebook.

(Sterling pic: Daniel Barradas)

The Valley fad of social network games like Mafia Wars and Farmville disguise old-school scams, Mike Arrington has been demonstrating over at TechCrunch this weekend. High-revenue don of social networking games Zynga, which makes the aforementioned Mafia Wars and Farmville, gets one-third of its revenue from various shady "commercial offers" and lead-generation systems, Arrington reports. Here's how HotOrNot founder James Hong described the social networking cash scene in a TechCrunch comment:

The offers that monetize the best are the ones that scam/trick users.... i'm pretty sure most of the money ended up getting our users hooked into auto-recurring SMS subscriptions for horoscopes and stuff.

Examples, via TechCrunch:

• "Users are offered in-game currency in exchange for filling out an IQ survey... They are told their results will be text messaged to them... and are texted a pin code to enter on the quiz. Once they've done that, they've just subscribed to a $9.99/month subscription."
  
• "Users are offered in game currency if they sign up to receive a free learning CD... The user is told they pay nothing except a $10 shipping charge. But the fine print, on a different page from checkout, tells them they are really getting a whole set of CDs and will be billed $189.95 unless they return them."

There's an entire thriving "ecosystem" devoted to these sort of "deals," the sort of thing that in a different context might just be called a "crime ring." It's a profitable network, at least for the people at the top: Arrington estimates Facebook might be taking in $50 million per year from Zygna alone.

So, social networks are basically turning in to just another snakeoil sales channel in the mold of late-night 1-800 number commercials. Which sucks not only for the marks who've been duped but, ultimately, for Facebook's investors, since taking this sort of easy cash reduces internal pressure to come up with some sort of truly innovative revenue stream.

Not to mention what it does to user trust: Who's going to want to hand over their credit card information or even cell phone number to the likes of Facebook amid all these scams? (Answer: People who passed their "IQ test" with flying colors and a useless $10/month subscription.)

MySpace CEO and would-be savior Owen Van Natta, the studmuffin hired away from Facebook, told the Financial Times he's not gunning for his ex employer any more:

"Facebook is not our competition," he said. "We're very focused on a different space."

Van Natta added that MySpace it will focus on its strength: Music. MySpace has become the default Web host for independent rock bands, and recently purchased music software company iLike.

MySpace wasn't always so blasé about social networking, the company used to have Facebook in its sights. It was barely two years ago that Van Natta's predecessor Chris DeWolfe got an urgent phone call from Peter Chernin at MySpace's parent company saying, "I need a plan for dealing with Facebook in two weeks." This led, according Julia Angwin's book Stealing Myspace, to a strategy for dealing with "the Facebook challenge head on," presented at a Merrill Lynch conference.

"I realize every person in tis room wants to ask me about Facebook, and, frankly, I want to talk about Facebook," [Fox Interactive Media president Peter] Levinsohn said.

But these days MySpace has just one third of Facebook's users. No wonder the company is singing a different tune.

It's just not a well advised one. Instead of competing with a money-losing internet company headed by a twentysomething college dropout, MySpace will now be taking on Apple (cash hoard: $30 billion) and Google (annual profits: $5 billion, operator of YouTube and soon to be a retailer of MP3s). Sounds like a great plan.

In 2005, not long after News Corp. bought MySpace, when it still seemed like a brilliant purchase... I congratulated him on the acquisition. "Now," he said, "we're in the stalking business."

Later in his Vanity Fair column, Wolff recounts how Murdoch asked the founders of Google "Why don't you read newspapers?", gave "a walleyed stare" during all conversations about Web news and tried to beat Facebook's Mark Zuckerberg to death with his cane.

Kidding; even after buying MySpace, Murdoch was over the moon for Zuckerberg. He invited the founder to speak at a News Corp. executive retreat, huddled with him throughout dinner — sparking obvious jealousy in MySpace co-founder Chris DeWolfe — and soon declared people were "all going to Facebook at the moment" rather than MySpace. All this according to Julia Angwin's Stealing MySpace.

The point is, Rupert Murdoch has always kind of hated on MySpace, cruelly, in public.

(Pic: Murdoch and MySpace CEO DeWolfe at the opening of MySpace's San Francisco office in Oct. 2007. Getty Images.)

Back in March fashion designer Dawn Simorangkir sued Love for libel, invasion of privacy, infliction of emotional distress, breach of contract, and intentional interference with Simorangkir's business—the fashion label Boudoir Queen—as a result of Love's misspelled and unpunctuated rants on the social networking sites—namely saying that Simorgank stole a bunch of clothes from her.

Love and her lawyer have filed a motion to strike the suit. [Note: Page Six reported on her brief on Saturday, which we missed because we were fighting through the hordes at the Barneys Warehouse Sale.] Why? Not anything have to do with free speech, but because Simorgankir is racist, homophobic drug fiend who used to be a prostitute. Oh, well, that makes it OK then. Say anything you'd like, Courtney.

The juiciest excerpts are below, but here is our favorite part:

Simorangkir repeatedly asked me both to partake in and to procure cocaine, Percoset, and other illegal and perscription drugs for herself and her husband. I told Simorangir that my "hard-partying" days were in the past and I declined to use any of her and her husband's drugs.

Screw what she said on Twitter, this is the real defamation. We still don't know what this has to do with the shit she talked on the web, but it does make for a fascinating read. Just wait for the countersuit the Love legal team has in the works.

Plenty of people will be paying attention to this suit, not only because Love is crazier than a meth addict in a fun house, but because it will have an impact on future lawsuits about what people can and can't say about others over the internet. In England, they're already throwing kids in jail for cyberbullying. Damn, Courtney, maybe that move to London isn't such a good idea after all.

Oh, Courtney, you haven't put out a record in five years, but you still manage to provide us with endless entertainment.

iLike became something of an icon for a certain class of startup: Built on social networks, fast-growing, unprofitable, advertising supported. The company's impending sale to MySpace at a fire-sale price could hardly be a bigger wakeup call to these fellow makers of software "widgets."

The company was once valued at $53 million, back when Ticketmaster bought a 25 percent stake in late 2006, according to the Seattle Times. iLike amassed a total of $17 million from Ticketmaster and other investors like Silicon Valley venture capitalist Vinod Khosla and former AOL exec Bob Pittman. Now it's negotiating to sell for just $19.5 million, All Things D reports, and $6 million of that is contingent on retaining certain employees in coming months.

It's quite comedown. But it's easy to see how iLike became a media darling and a hero to other makers of widgets. In the late spring of 2007, iLike ported its music recommendation service to Facebook, and in the process spiked its user base dramatically, to 15 million from 3 million over six months. In one week just after the Facebook launch, four venture capitalists asked CEO Ali Partovi (pictured) to lunch, the Seattle Post-Intelligencer reported; the company reportedly added close to 200 servers over the course of the summer.

After retaining insidery Silicon Valley flack Brooke Hammerling, iLike saw its praises sung widely in the media (emphasis added):

• Wall Street Journal, June 2007: "'Somebody's going to end up being the Facebook music service,' [co-founder Hadi Partovi] says. 'It's either going to be us, in which case we're made, or it's not.'" (By the time Patrovie gave this retrospective quote, iLike was by far the dominant music service on Facebook.)
• Billboard, July 2007: "The smart money says someone will acquire iLike, and soon. The company's social media discovery capabilities are a natural extension to any digital music service, particularly iTunes."
  
• BusinessWeek, July 2007:"'Widgets are a fundamentally important idea,' says Vinod Khosla... who has invested in two widget makers, Slide and iLike. 'I believe it has the potential to create big billion-dollar winners.'"
• Forbes, October 2007: "Says Khosla [Ventures]'s David Weiden: 'Widgets are the next kind of media network.'"
• USA Today, November 2007: "The company... has become an overnight sensation... Dave McClure, an angel investor in Silicon Valley, wouldn't be shocked if iLike... and others eventually go public."

Revenue was presumably slow in coming, though, because by fall of the following year iLike was said to be trying to sell itself and Ticketmaster wrote off half the value of its investment. Now investors are basically trying to break even with the MySpace sale. The music and advertising businesses have their own unique problems, but startups in other hot sectors, like iPhone apps, should beware: The excitement can dissipate as quickly as it inflates.

(Pic: Niall Kennedy)

Young Brown should take a look at 37-year-old Evan Williams' biography. The Twitter co-founder worked at Google for a year and a half, witnessing first-hand how a total lack of focus — Google branched out wildly from search— is no barrier to massive profits. Then Twitter happened only because Williams was aimless enough to abandon the original startup from which it sprang, Odeo, just as he had abandoned the original plan of the company behind his last smash hit, Blogger.

Williams is the perfect embodiment of the Silicon Valley ethos that business plans are oppressive things, to be deferred as long as possible.

(Pic: Williams, by Joi Ito)

You can still use Facebook dating apps, as AllFacebook.com points out, but those usually want to make you pay money eventually. Of course, it's not like random profile searches are the best avenue to a romantic liaison. But the prim change to Facebook's search system fits neatly into the social network's uptight culture: First it was only for Harvard students, then Ivy Leaguers, then college kids; to this day, your profile is, by default, shielded from the general public and even most other Facebook users. (We asked the company's flacks for comment and have yet to hear back.)

While Facebook has been defined by the nerdy engineering culture of Silicon Valley, and of founder Mark Zuckerberg, competitor MySpace was started by a spam and spyware company, promoted itself in seedy nightclubs, hosted events for aspiring models and eagerly recruited Tila Tequila away from Friendster as an early member. Though owner News Corp. is struggling to turn the site around, it must take some comfort in the fact that Facebook is as prudish as ever.

(Pic: Helgasm on Flickr)

The video clip above, from YouTube, is grainy, but TechCrunch's Mike Arrington assures readers it's in the final movie. I hadn't seen the film myself, unaware it touched on social networking, but Arrington writes that MySpace takes up a solid five minutes of the movie.

The treatment is brutal. Early in the clip, MySpace co-founder Tom Anderson asks Sandler if he actually uses the product. The star's reply: "No, no no. I fuck girls, Tom. I don't have time for that." When he goes on stage, the comic greets the MySpace crowd as "nerds" and then trashes their users: "They say the more friends you have on MySpace the less friends you have in real life." .

Sure, MySpace's competitors are insulted, too. But companies like Silicon Valley-based Facebook are fighting hard to avoid Hollywood; Facebook trashed Ben Mezrich's book about the company, The Accidental Billionaires, and by extension the Aaron Sorkin movie based on that book, calling it inaccurate.

But MySpace is based in Beverly Hills, close to Hollywood, and seems to have a better handle on the big picture: Being on the silver screen, in any context, means you're culturally relevant. Why not embrace the opportunity to make your virtual community a lot more real? (Via TechCrunch.)

Says TechCrunch:

MySpace has been holding a number of meetings for staff... during which they've referred to the recently terminated employees as "fat". Unfortunately, some of these "fatty" employees have been present at these very meetings - the company has kept a number of terminated employees onboard through the duration of their contract...

And if that weren't bad enough, workers' final paychecks will bounce, incurring a bank fee and possible overdrafts, since MySpace screwed up its calculations and put a stop payment on the drafts. Hopefully you didn't deposit yours too quickly!

It's a good thing MySpace's business doesn't involve brokering sensitive relationships or allowing people to communicate clearly with one another.

For this, Anderson will earn $500,000 a year for two years, Business Insider hears. He also needs to be an "ambassador," for MySpace, which sounds very much like a non-job:

As a part of the deal, [MySpace CEO] Owen [Van Natta] and new News Corp digital media boss Jon Miller asked Tom to stop coming to the office..."He'll have little decision or involvement with the product," says a source.

Of course, Anderson will continue to be everyone's default MySpace friend and will presumably continue to show up for all kinds of exciting parties. He's just not getting tens of millions of dollars for it anymore, having been demoted to six figures, and won't be mucking with MySpace's "strategy" of being a zombie social network. An economy like this requires certain sacrifices.

More brutal honesty from the official statement (emphasis added):

"MySpace grew too big considering the realities of today's marketplace," said Jonathan Miller, News Corporation's chief executive of Digital Media... "I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward. I am confident in MySpace's next phase under the leadership of Owen and his team."

The sort of talk may rattle employees, but it should hearten investors: without this sort of sober and honest thinking, Van Natta (pictured) doesn't even have a prayer of turning around his social network to surpass his nemesis and former boss Mark Zuckerberg at Facebook.

(Pic: Dan Farber)

A deal with Google is about to shrivel, and now MySpace is facing layoffs and needs a new sales chief, sources "close to" Van Natta and fellow News Corp. newcomer Jon Miller tell Business Insider.

Expectations for MySpace's future were pretty low to begin with; the company's new leaders and their associates have now pushed them so low that the barest gains will make them look like heroes.

(Pic via All Things D)

News Corp.'s social network is near the end of an advertising partnership with Google reportedly worth $300 million per year. Any sequel to the arrangement is expected to be worth considerably less.

Speaking at News Corp.'s D tech conference, which runs concurrent with Google's own I/O conference in San Francisco, MySpace executives insist they're not sweating. There's a year and a half left in the existing deal, CEO Owen Van Natta said, and it constitutes less than half MySpace's revenue.

Translation: MySpace has bigger problems to grapple with, like a recent poll showing 6 in 10 users are using the site less than they used to. And besides, there's plenty of time for the young and old generations of media moguls to patch things up with one another.

I still remember the day I called you up and tried to recruit you to Valleywag — only to learn that that sneaky rapscallion Nick Denton had beaten me to the punch by one whole day in offering you the night shift at Gawker. It all worked out in the end — and perhaps better than I could have imagined back in 2007. But the main lesson I take away from that is that you can get Denton to do pretty much whatever you want if you're patient enough.

Denton, who has a weakness for idle truisms, likes to say that gossip is a young man's game. But you're old enough to remember the first dotcom bubble, and how it popped. That's going to be key in the next few years. We may escape a depression, but Silicon Valley is facing a reckoning nonetheless. Too much venture capital chased too few idea for far too long — and a buoyant economy can no longer hide the startup factory's mistakes.

The biggest mistake you can make is getting too close to your Valley sources and fall for their groupthink in order to ingratiate yourself. (You know how I've scolded you for gullibly buying the hype that Twitter is an amazing source of real-time news. Okay, perhaps it was — for five seconds, before the blowhards, spammers, and self-promoters found it.) At least your schooling will help you remain an outsider: As a Berkeley grad, you'll have an instinctive dislike for the Valley's Stanford in-crowd.

At the same time, don't forget that your years living, studying, and working in the Bay Area give you a better understanding of your beat than anyone can have from 3,000 miles away. Gabriel and Nick, though well-intentioned, have the Manhattan media habit of confusing proximity with relevance. Gawker is much more than New York now — and Valleywag's unique place therein must be firmly grounded in northern California's shaky soil.

Remember: Love is far more powerful than hate. Keep a clear-eyed passion for the Valley. Most tech reporters here secretly loathe their subjects, but try to disguise it with a supine gladhandery as they beg for scoops about new startup website features. They hate themselves and the people they write about. Sad, right? By loving the Valley, you can write about it more honestly than any of them. Just prepare to have your heart broken again, and again, and again. To truly love something, you must love it with all its failings.

For example, the Valley's Alice-in-Wonderland economics — why is Twitter worth more than most startups precisely because it has no revenues to speak of? But the thing you must love most about Silicon Valley — the part of the story the local press corps always skips over in favor of buzzwords, punditry, and lazy analysis — is its people.

The Valley's story is not one of chips and code. It is not a tale of technology. It is the always-running tragicomedy of the people who make technology.

Here are a few characters to watch. I hope it helps — but I can't wait to see who you add to the list.

Marissa Mayer Valleywag's first story remains its best. The public face of Google, Mayer also runs search, the only business that matters there. The cupcake frosting of her girly image — one she assiduously advances at every opportunity — may humanize the otherwise robotic computer scientist. But it is a distraction. The real question to ask about Mayer: Does her spreadsheet-ridden management style scale to new problems beyond search? Are her strengths now turning into limitations?

Mark Zuckerberg Ignore the nerd façade. Facebook's 25-year-old CEO is headstrong and ruthless. Here's the grand irony of Zuckerberg's revolutionary venture: He claims to be all about openness and sharing. But his imperious, my-way-or-the-highway management style has created a fractious culture of dishonesty, delusion, and disillusionment at the social network. His underlings either learn to say things they don't believe, or they move on. This is why Sheryl Sandberg is exactly the wrong COO for Zuckerberg. The veteran of the Clinton Administration has forgotten her Google training and reverted to Washington-player form, where staying on message is all that counts. Facebook's best hope is that Zuckerberg learns from his mistakes — but first he has to recognize them as mistakes.

Carol Bartz Yahoo's CEO swears like a sailor. At last, a boss who has found the right language to describe Yahoo's plight! Bartz brings a refreshing frankness to Yahoo. But the already demoralized troops she inherited will need to start seeing results. Otherwise, Valleywag will continue to be a steady recipient of leaks from Sunnyvale.

Elon Musk The CEO of Tesla Motors and SpaceX is living the geek high life, playing with fast cars, rocket ships, and other people's money. It's wonderful that Musk has realized even a small part of his childhood fantasies. But he risks destroying his dreams by refusing to reconcile them with reality. Factcheck everything Musk says. For example, was he actually running either Zip2 or PayPal, the previous dotcom successes he likes to cite in his bio, when they were sold?

Owen Van Natta Everyone is going to give MySpace's new CEO a pass, because the so-called "social portal" is so clearly troubled. If the former Facebook executive succeeds in a turnaround, it will be viewed as an astonishing achievement; if he fails, people will say no one could save MySpace. That's not fair. Hold his feet to the fire, and judge this disturbingly tan rock-star boss like anyone else on the list.

Peter Thiel Thiel, the PayPal cofounder, likes to brag about how he recruits only the best brains from the best schools to work at Clarium Capital, his hedge fund. Oh, really? Take a look at their résumés on LinkedIn. Like so many of this outspokenly harebrained libertarian's theses, the claim sounds good on paper but doesn't stand up to inspection. Valleywag, alone in Silicon Valley, can take a keen look at Thiel's rhetoric without being dazzled by his inflated wealth.

Tim Armstrong Like Van Natta at MySpace, Armstrong, a Google golden boy now charged with running AOL, will be enjoying a honeymoon. Don't worry: There are plenty of disgruntled AOLers who will gladly help you break up the lovefest.

Jimmy Wales Remind me: What does Wikipedia's founder actually do to earn his keep, besides give speeches? In all this time, I was never able to figure that out. Maybe you can!

Eric Schmidt When did Google's CEO turn into such a raging egomaniac? When the blogosphere was the only corner of the Internet that criticized him, he dismissed it as a "cesspool." But now everyone from Hollywood to the New York Times to the Federal Trade Commission is looking askance at his online empire's practices. "Don't be evil" has turned into "don't get caught." He will, though. Be ready when he does.

Larry Page and Sergey Brin Google's wonder twins have achieved geek nirvana, creating a cloistered campus with free food, lava lamps, and exercise balls to spare. They have a fleet of jets to transport them to rocket launches or rendezvous with Richard Branson and Bono. They've even managed to get married and reproduce. Just one question: Are they still sane? Were they ever?

There are many people who will help you — many of the same people who helped me so much, I hope. They include:

• Nick Denton, for putting up with three years of playing hard to get — and then putting up with much more besides.
• Brian Lam, Choire Sicha, Noah Robischon and Lockhart Steele, for tag-teaming me into taking the job.
• Gabriel Snyder, for expertly steering Valleywag into Gawker's welcoming arms.
• All the Valleywaggers: Paul Boutin, Nick Douglas, Megan McCarthy, Tim Faulkner, Mary Jane Irwin, Jordan Golson, Nicholas Carlson, Jackson West, Melissa Gira Grant, and Tim Woolery. You guys, we've been through so much together!
• Richard Blakeley: We made sweet Photoshop magic together.
• Everyone at Gawker Media: How much do I love you? Far more than just five milligrams.
• Sarah Lacy, Kara Swisher, and Peter Kafka: My peers and fellow purveyors of Valley gossip, you constantly inspired me.
• Countless sources, tipsters, and fellow scribes: Please understand that I esteem you none the less for not naming you here. In fact, your continued anonymity is the best sign of my abiding affection.

The image associated with this post is best viewed using a browser.Good luck, Ryan. I'll be reading eagerly.

Don't screw it up.

Yours,

Owen
The Valleywag

(Photos by Brian Solis and Scott Beale/Laughing Squid)

According to our tipster, who works for one of Sony's Internet service providers, MySpace's security team inadvertently banned Sony employees from accessing its site in the course of going after a spammer:

I just talked to MySpace's head of security and they are lifting the block.

Here's why Sony was blocked. They get their Internet through us. MySpace went after one of our customers for MySpace spamming. We terminated that customer because I hate spammers with a vengence, but then MySpace banned our whole [system]. In essence, MySpace believed we were just a hosting provider and not the actual Internet — i.e. providing transit connectivity where companies go through us to reach other companies.

Oh and it wasn't just Sony... Los Angeles County government along with Orange County government offices use us for transit. So they were also blocked.

We were emailing MySpace for a few days, but they didn't believe we provided anything more than dedicated servers. We believe the only reason MySpace finally unblocked our network was because we sent them a link to your story.

We were scratching our heads as to why MySpace blocked Sony when Sony spends so much money advertising movies and music.

Our tipster speculates: "Revenge for all the crap services that MySpace provided to Sony as a studio? Maybe." There'd be a ha-ha joke about how not being able to log onto MySpace's unusable site is a kindness, except that Hollywood studios, which set up pages for their movies to promote them, actually need to access the site. Here's the memo about the outage:

From: Brian Franke
Sent: Thursday, May 14, 2009 1:32 PM
To: Interactive
Subject: MySpace.com Update

Folks,

Just wanted to let you know that we are looking into the MySpace.com redirect to Google.com issue.

It appears to be on the MySpace end (unexpectedly), and has been escalated to their network team.

No ETA yet on a resolution.

Please contact me if you have time-sensitive MySpace deliverables, and we can discuss options.

Regards,

Brian

—-—-—-—-—-—-—-—-—-—-

Brian Franke

Executive Director of Technology

Sony Pictures Imageworks Interactive

Update: Brian Franke's colleague Nancy Kim, director of digital communications strategy at Sony Pictures Entertainment, sent us this email:

Hi Owen,

Can you please remove this article?

Not sure where you received that information? As Sony is certainly not "banned".

Please feel free to call me if needed.

Thanks!

Nancy

So now Sony has two problems: A ban by MySpace, and a digital communications strategy which seems to involve denying reality.

(Photo by xurble)