According to the Wall Street Journal, Facebook is developing a new app called 'Reader,' which looks a lot like Flipboard, at least in its current iteration. Reader will reportedly compete with Flipboard directly.
The Wall Street Journal says that currently Reader is only being developed for iOS and that Mark Zuckerberg is personally involved in the project. Interestingly, one of the original iPhone interface designers (and a current Facebook designer), Michael Matas, is leading the project.
The fact that Reader is only being developed for iOS right now could be a sign that it relies heavily on some of iOS's APIs or frameworks. iOS is also a natural start for big software initiatives, as many of its users are early adopters and more tech savvy than Android users as a whole. Reader also shows that Facebook is fairly nervous about Twitter as a news distribution source. Reader will reportedly compete with Twitter by displaying content from Facebook users, news organizations and other publishers in a user's timeline. Reader will also, of course, be another away Facebook can monetize its services on mobile.