Okay, they didn't actually announce the device yet, but the news released today is bigger than just a device. Hearst (a US media conglomerate) just announced the formation of Skiff, its new digital distribution platform. The rumored new device does exist and will be part of this platform. But it' won't be the only device. Skiff platform will support wireless delivery of content to more than just their device. According to the Skiff homepage, supported devices will include notebooks, PCs, tablets, smartphones, and dedicated reading devices.
We don't have much info on the gadget yet, but the press release does mention that it will have a color screen and that Skiff has partnerships with Sprint and Marvell.