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While much attention overseas has been focused on the ups and downs (mostly downs) of Facebook's recent initial public offering, the Japanese media have been subjecting online gaming and social networks to increasingly critical scrutiny. The issues raised range from complaints over lax privacy safeguards and exploitation of minors by predatory businesses to reputed ties to organized crime.

"I don't wanna become a Facebook fool," rants Michiyuki Shimizu in Sapio (June 27). The freelance writer cites Facebook's growing reputation as a home wrecker. It seems a survey by the American Academy of Matrimonial Lawyers found that 81 percent of attorneys questioned replied that in divorce cases they had handled over the past decade, text messages sent via social-media sites were submitted as a source of evidence, with the trend accelerating over the past five years. (In another survey in the U.K., a review of divorce claims showed that in 5,000 cases, references to Facebook appeared in 33 percent.)

When such a trend becomes conspicuous in other countries, Japan is seldom far behind. Shimizu cites the unhappy tale of a 40-year-old Osaka doctor who was moved to engage an investigative agency when he noticed his spouse appeared suspiciously enthusiastic over Facebook. A computer-savvy private eye managed to hack into her account (her password was her own birthday) and found amorous exchanges between the wife and a female physician. One read, "Let's both dump our hubbies so we can be together." Further probing determined the two women were also engaging in clandestine romantic trysts. Data captured off the screens were submitted as evidence in the divorce suit.

"What really makes Facebook so frightening," writes Shimizu, "is how it blurs the boundaries between public and private. You might disclose something about your company to an intimate friend; that raises the possibility it will be spread to a 'friend of a friend.' "

Yu Arai, a researcher on cyber security, is quoted as saying it's becoming a common practice of industrial spies to tap into SNS relationships as a means of uncovering corporate secrets.

The May 25 issues of Shukan Asahi and Nikkan Gendai both scrutinized the social networking site called "Ameba Pigg," whose users some 1.4 million of whom are estimated to be under age 15 assume the guise of cute little avatars. The avatars hang out in a virtual Shibuya and Roppongi and suavely attired males can befriend females, inviting them to accompany them to a notorious subsite called Pigg H, where private rooms are furnished with beds presumably for a session of cybersex.

Apparently some of the girls enticed to go along by offers of gifts are minors masquerading as adults, so we may be looking at a new form of virtual enjo kosai (teen prostitution). Nor is it entirely safe because it's confined to online. As IT journalist Toshiyuki Inoue explains, "Once the participants become friendly, they can exchange email addresses under their real names and possibly even meet in person."

Complaints over minors running up high charges for online gaming has led the major players in the industry, including such companies as Gree and Mobage (DeNA), to adopt self-imposed restrictions designed to discourage access by minors.

As potentially traumatic as addiction may be for the younger generation, Nikkan Gendai (June 12) notes that even middle-aged salarymen can become hooked on SNSs, which can lead to serious depression.

"The first sign of trouble is insomnia," says psychiatrist Joji Suzuki. "We need to watch out in particular for people who can't walk someplace without constantly checking their smartphone, or who constantly interrupt whatever they're doing to check their phone."

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Social networking, online games in Japan media's sights

(MoneyWatch) Microsoft (MSFT) has agreed to acquire enterprise social networking company Yammer for $1.2 billion, according to a report in the Wall Street Journal. The move extends Microsoft's reach into corporate information technology and lets it compete more thoroughly against Google (GOOG) by bolstering its cloud computing offerings.

Yammer is one of a group of start-ups that has targeted so-called enterprise social networking, like a combination of Twitter and Facebook aimed at private use by companies. Such technology allows employees to keep abreast of each other's activities, which should promote collaboration and innovation. The only company in this space with an even higher profile is Jive Software, which had $77.3 million in revenue during 2011 and a net loss of $50.8 million.

Yammer raised an $85 million round of funding last quarter, bringing its total to $142 million since 2009. That set an estimated valuation of $500 million to $600 million, so those recent investors will roughly double their money.

[Update: According to information that MoneyWatch received from private company financial analyst firm PrivCo, Yammer's estimated revenue in 2010 was $10 million and $30 million in 2011, which means a year-over-year growth of 200 percent. That would make the deal worth 40 times its 2011 revenue.]

The company claimed 5 million corporate users in the first quarter of 2012 and penetration into more than 85 percent of the Fortune 500. Although the bulk of these users are unpaid, Yammer uses an interesting monetization model.

It allows people within a company to set up a private social network for free. But a company must pay for administrative control over employee use. By encouraging free use, Yammer hoped to create a grassroots movement in companies, build a dependency of usefulness, and eventually encourage revenue streams using a number of pricing models.

One of the company's strategic strengths has been its decision to create an open application programming interface, or API. That allows others to create additional and extensions, like integration into SAP's popular ERP software for running large organizations. In April it announced integration with Microsoft Dynamics, the software giant's customer relationship management platform.

The acquisition adds some important capabilities to Microsoft's software portfolio. The company already has a major collaboration platform in its SharePoint product, but many companies don't make thorough use of it. Yammer gives Microsoft a way to build collaboration and communication and extend its reach. Microsoft could then add administrative and other features to its existing software packages.

Yammer also brings Microsoft some important competitive advantages in cloud computing. It could help extend the capabilities of the cloud versions of Microsoft Office and make its offerings more attractive to companies that otherwise might consider Google's cloud applications and its Google+ social network.

The acquisition could help improve the lot of social network and Internet companies, which have felt a sting in the investment market since the problems of the Facebook (FB) IPO.

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Microsoft buys Yammer for $1.2 billion

SAN FRANCISCO (Reuters) - A Zynga Inc(ZNGA.O) executive overseeing one of the social gaming company's most successful games has left to join Identified, a startup social network for young professionals.

Brian Chu, formerly the lead project manager of Zynga's hit CityVille, said Friday he will be vice president of product at the San Francisco-based startup.

CityVille had been Zynga's biggest hit over the past year, only recently ceding its position as the most popular game on Facebook to another Zynga title, Texas HoldEm Poker.

In recent months, several notable mid-level executives have left Zynga, which went public in December but has suffered a steep fall in its stock price. In March Groupon Inc (GRPN.O), which runs the daily deals website, poached Curtis Lee, a Zynga director of product management.

Chu said he left Zynga amicably and with "the door open."

"It was an intense time and very stressful," Chu said. "But I wanted the opportunity to take on the challenge of something as big as professional identity and companies like LinkedIn."

Identified, which raised $21 million in its second-round venture capital financing, claims a registered user base of 10 million. The startup provides a resume-building and networking service for young professionals under 30 - similar to LinkedIn, but with "gamified" features.

(Reporting By Gerry Shih; Editing by Richard Chang)

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Zynga manager moves to social networking start-up

Here's a look at potential safeguards that companies may put in place in light of recent cases of alleged abuse and rape in youth-centric online communities.

Social networks catering to adolescents have a serious trust issue -- and justifiably so.

Location-based flirting app Skout and teen social-networking game Habbo were hit by reports that adults allegedly used their services to sexually prey on underage users, causing both sites to temporarily restrict access this week.

The incidents serve as a reminder of the potential risks that arise when a minor logs on to any social network, an issue that has gotten even more scrutiny with Facebook looking to possibly open its doors to users under 13. More importantly, it reinforces the notion that no network is truly safe, no matter the technology safeguards that are put in place.

"You can never know completely that the person at the other end of the conversation is a kid," she said.

Nevertheless, Skout and Habbo have quickly shifted into damage-control mode with attempts to reassure users and the media that it will improve the protection that it offers to its users. Both companies have said they are trying to upgrade their security measures, moderators, and technology.

Paul LaFontaine, CEO of Habbo parent company Sulake, did not respond to questions, but did post on the company blog, indicating that the company is working to "ensure that best-in-class moderation and detection systems are in place to create a safer and improved experience for our many responsible users."

Skout, likewise, has said it would look into upgrading its safeguards and take additional steps to protect its users.

Age limits One protective measure is age limits, which Skout has said it would look into for its community. But the measure has long been debated within the industry, particularly because it's usually ineffective.

"It's a huge problem. In most case, it really doesn't work," said Chris Babel, CEO of TRUSTe, a company that helps online companies address privacy concerns.

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Can social networks protect your kids?

GLENWOOD SPRINGS, Colorado Strawberry Days, meet the 21st century.

Colorado's oldest civic celebration, dating back to 1898, is now incorporating modern-day influences such as social networking and American Idol to celebrate Glenwood Springs' biggest event this weekend.

Our Strawberry Days social networking site is a great way for us to reach a wide network of people, said Dylan Lewis, pubic relations director for the event. Social media marketing is all about word of mouth, and this form of media helps us develop relationships.

Lewis worked with the Glenwood Springs Chamber of Commerce to create the new strawberrydaysfestival.com social networking site that invites members to join, comment, add content and view photo slide shows. The site is dedicated to all that is Strawberry Days in Glenwood Springs.

We've had about 100 members join. I've seen people comment, I remember going to Strawberry Days back in 1979.' But at the same time we're showing Strawberry Days to a whole new group of people, he said.

Facebook users can also follow event postings and updates on the Strawberry Days Festival page, which has already surpassed 1,000 likes in less than four months since its creation.

People just have a natural, genuine interest in Strawberry Days, from all over the state, especially on Facebook, Lewis said.

The Strawberry Days social networking sites help event organizers post such information as the Miss Strawberry Days candidates and information about the Glenwood Idol auditions that took place Monday, as part of events leading up to the festive weekend.

Glenwood Idol contest

Glenwood Idol is a local take on Fox's uber-popular reality TV singing competition, American Idol.

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Strawberry Days social networking brings talent to more than one stage