Tumblr founder David Karp, who owns at least 25 percent of the company, has agreed to stay on for at least four years, according to ATD. The WSJ says Tumblr would remain an independent company.

comScore pegged Tumblr’s worldwide traffic at 117 million visitors in April. The site has raised about $125 million in funding, putting its valuation at $800 million. As my colleague Mathew Ingram points out, the company’s revenues were less than $15 million in 2012, though Karp has estimated they will hit $100 million this year.

Yahoo is holding a press event on Monday afternoon in New York, but hasn’t specified what the event will be about. We’ll be there.

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Of course, as Om and others have already mentioned, there’s no guarantee this deal will actually be consummated: it could fall apart on valuation, as so many deals do — or Facebook could swoop in with a much higher offer and snatch Tumblr out of Yahoo’s clutches, the same way it did when it stole Instagram away from Twitter last year for close to $1 billion.

Update: According to the Wall Street Journal, the Yahoo board of directors has approved a $1.1-billion all-cash bid to acquire Tumblr.

It makes Yahoo look desperate — because it is

Even if the deal does get done, one of the risks for Mayer and Yahoo is that the company could look desperate by paying more than $1 billion for a site that had revenues of less than $15 million last year (although CEO David Karp has said that figure should hit $100 million this year). That’s an almost bubble-like multiple for a company, and there will likely be plenty of criticism from investors who believe that $1 billion could be better spent elsewhere — in other words, on businesses that would make Yahoo a better return.

But the painful fact is that Yahoo doesn’t just look desperate — in many ways it is desperate. Mayer has made some changes since she took over the ailing former web portal, including the acquisition of Summly and a number of other mobile-focused startups and services, but the company still needs to make some aggressive moves if it is going to jump-start any growth at all. And since Yahoo has about $4 billion in cash on hand, it can arguably afford to make a big bet.

Yahoo buying Tumblr makes sense. Tumblr is only big, cool, newish social platform that Yahoo can afford.—
Henry Blodget (@hblodget) May 17, 2013

For Yahoo, the addition of Tumblr would do a number of things: because of the size and profile of the deal, it would make a major statement about Mayer’s intention to do whatever it takes to revitalize the company, and it would also send a signal to Facebook and Google — and even Apple — that Yahoo is a potential force to be reckoned with when it comes to potential acquisitions. Is doing that worth $1 billion? That’s for Yahoo’s investors and board of directors to decide.

Just as important, it would inject some much-needed life and energy into the somewhat stale lineup of content that the company currently relies on, which caters more to the over-50 set than it does to anyone in the much-desired 18 to 25 demographic. More than any other network, Tumblr is the platform of choice for media-obsessed teens and 20-somethings, who spend massive amounts of time sharing photos and videos and animated GIFs on the site — an engine of potential value that Yahoo desperately needs.

Tumblr gets a massive exit

This doesn’t come without its own risks, of course: As a number of observers have noted, Tumblr’s content contains a large quantity of not only mature or arguably offensive content but outright pornography, which many argue is the source of its massive traffic numbers. How Yahoo (or Facebook for that matter) would deal with this kind of content remains to be seen.

3 q's for Yahoo: 1) Can you convert Tumblr users to Yahoo products? 2) Can you monetize Tumblr PVs? 3) What to do w/ all that Tumblr porn?—
Mark Zohar (@markzohar) May 18, 2013

For Tumblr, meanwhile, being acquired would solve a number of problems — the main one being that the company has gone well beyond the “we’re a startup so we don’t really have to make money” stage, and is facing increasing pressure from the investors who have given CEO David Karp more than $125 million in venture financing, an investment that values the company at about $800 million. Accepting a giant check from Yahoo would take care of that problem in one fell swoop, especially if it was all in cash.

With a major company like Yahoo as a partner, Tumblr could connect its massive audience of users to the firehose of ads and other monetization methods the giant web portal has, and potentially generate much more revenue than it could have by itself. The only lingering question at that point is whether Tumblr fans decide that Yahoo is poisoning the well of social content and community on the site, and decide to flee for greener pastures. In other words, does Yahoo make Tumblr into YouTube — a successful standalone network that can grow and prosper on its own — or does it become MySpace?

The only scenario where a Yahoo-Tumblr combo works is if Yahoo keeps Tumblr separate in the same way Google managed YouTube.—
Mark Birch (@marksbirch) May 18, 2013

Post and thumbnail photos courtesy of Shutterstock / ollyy and Albert Chau

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After reporting Thursday that Yahoo was considering a number of options for Tumblr, including partnerships or strategic investments, ATD reported Friday that Mayer had decided to go all in. Om reported Thursday that Yahoo was worried about counteroffers from Facebook, much how Facebook stole Instagram from Twitter after Twitter co-founder Jack Dorsey’s courtship of the photo-sharing site. Now the board plans to meet Sunday to consider giving final approval to the offer.

Tumblr’s backers will likely be pleased with a $1.1 billion price tag, especially if, as reported, it involves cash However, it’s far from certain that such an outlay would do anything to revive Yahoo’s fortunes. Mayer certainly has been trying to bring new blood into the company of late, snapping up a number of smaller mobile startups before focusing on Tumblr over the last month.

Yahoo has scheduled a press event for Monday evening in New York to discuss “something special,” but it wouldn’t hint at anything else. We’ll be there to cover the event, but in the meantime, here’s Tumblr founder and CEO David Karp’s appearance at our paidContent Live conference in April, discussing his company’s fortunes:

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This isn’t a new idea, but it was revitalized by Buzzfeed’s Katie Notopoulos in early April, who suggested people pick a teen and find out what kids are up to on Twitter these days. The hashtag took off, and if you haven’t searched for the results recently, you should.

My teen hates school because you have to wear pants there. I love my teen. #followateen—
Choire Sicha (@Choire) April 12, 2013

#followateen update 2: he's upset about being placed into remedial english next semester. He also spelled remedial wrong. Good luck, teen!—
Brandon (@BrandonTCX8) December 30, 2011

Not sure I understand the #followateen hashtag. Are people really following random teens? How do you find one to follow?—
Matt Yglesias (@mattyglesias) April 30, 2013

(Sometimes the teens even catch on.)

My teen says she's pretty sure my deer tweet is about her, and she's pretty sure she doesn't know me. #followateen—
Meaghan O'Connell (@meaghano) April 13, 2013

Aside from making fun of random teenagers, the growth of the hashtag can actually teach us a good deal about teens, social media, and our weird relationships with the internet. Here are five things I actually learned from #followateen:

Life is a lot harder for teenagers in 2013

When Timeline came out last year, I went back and deleted a lot of old wall posts, and I was shocked by the volume of bad photos and inane thoughts my friends and I posted. (i.e., “Do you have a copy of the math homework?” or “OMG lacrosse practice was so hard today.”) At the time, I thought that teenagers had probably learned from my generation’s early adoption and over-sharing, and that today’s teens had stopped posting as many inane, personal moments online. Surely they’d come to realize that everything they post on the internet is public and searchable forever.

Hahahaha. No.

Scrolling through posts from teens on Twitter this week, it became clear that they have not stopped posting personal, intimate details of their lives online for anyone to search, and if anything, they’re posting even more. As someone who went through high school missing one of my front teeth (don’t ask), I cringe for the future selves of these teens who will wish they’d posted a little less for the public to see. And in my (pretty recent) day, we didn’t even have Instagram or Tumblr.

PROMMMMM TOMORROWWW CANTTT WAITTTTT 😁😘😍😙—
May29th™ (@TiiAHBHOO) May 03, 2013

I have 6 school days left in my senior year and I just got my first detention ever for leaving gym class early. Ha. #whatajoke—
ʝαє∂єи вαяℓσω (@jaebarlow) May 03, 2013

im grounded, so i guess i will just make some vines—
jason orcutt (@jason_orcutt) May 03, 2013

#followateen is the future

You can lament those selfies and poor grammar on Twitter all you want, but how teens are using social media like Twitter today is likely going to have an impact on what we’ll all be using ten years from now. Companies like Facebook and Twitter are struggling to build advertising networks and continue to add new users, but data has shown that many of those new users are actually coming from older generations, as kids are being drawn to new sites like Snapchat, Vine, Wanelo, Tumblr, and Instagram.

You and I don’t use Twitter the same way

When I log on Twitter, I find people talking about the latest tech news, debating the proper way to report corrections to tweets, and LOLing at internet trends like #followateen. I bet the average age of the people I follow is 30. But searching for teen-esque hashtags and scrolling through the resulting posts was an incredible reminder that Twitter is entirely what you make of it, and that my experience on the network probably looks nothing like yours.

It’s easy to forget when everyone becomes so accustomed to his or her personal feed that this is true. I would guess that there’s far less disparity in people’s different Facebook and Instagram experiences, because those social networks are much more dictated by the design of the sites and the types of content people can post. But on Twitter, you create your own adventure.

Twitter is totally creepy, whether or not you #followateen

Yes, it can be super creepy to #followateen on Twitter and treat that teen like a zoo specimen for observation. But Helena Fitzgerald of The New Inquiry points out that, really, following a teen and reporting back on the hilariousness of their lives is no different than most of our Twitter relationships, where we follow people and retweet them and view their tweets as news; especially when most of them never follow us back. Humans are curious about other people by nature, and Twitter plays up that curiosity in ways that can be creepy but also completely entertaining.

Stupidity on the internet is certainly not confined to kids

Lest the adults get too full of themselves and their superiority over the teens, the emergence of the #followanadult hashtag on Friday serves as incredible reminder that adults can be just as predictable and boring online as the teens are.

Growns who think teen tweets are dumb (#followateen) should see their fellow adults'. Today we dare to #followanadult. Join us won't you?—
Rookie (@RookieMag) May 03, 2013

#followanadult my adult is posting articles about divorce, punctuated by wiz khalifa lyrics.—
m.h. (@zefzefmeredeath) May 03, 2013

my adult gets a text, email and phone call from Walgreens when his prescription is ready. He thinks this may be overkill. #followanadult—
shannon (@shansperl) May 03, 2013

@tavitulle My adult's corporate employer is planning an office-wide Harlem Shake parody. #followanadult—
Kirsten Reach (@KirstenReach) May 03, 2013

my adult is out of kombucha #followanadult—
Tavi Gevinson (@tavitulle) May 03, 2013

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There was much talk about both aspects of this ongoing evolution at the conference, from people like star blogger Andrew Sullivan and Tumblr founder David Karp to investor Ken Lerer and Guardian editor-in-chief Alan Rusbridger. What follows are just some of the key lessons or moments that struck me as significant during the show (you can also read our live coverage of each session and watch livestreams of each panel as well).

Paywalls vs. open journalism:

During my interview with him, one of the key points that Guardian editor Alan Rusbridger made was that there is a very clear tension between the efforts by an increasing number of newspapers to erect paywalls — in order to bolster their revenue — and the philosophical approach to journalism that sees openness and interactivity with readers as a cornerstone of what journalism has become. As Rusbridger put it:

“It is journalism that wants a response. It is journalism that is itself responsive. It is journalism that doesn’t just sit on the web as though it has no connection with the web, that acknowledges that the web is the most extraordinary revolution in publishing where lots of people will be publishing extremely worthwhile and informative information. And so you can produce better things by not ignoring it or building a barrier between yourself and that but incorporating it and linking to it.”

The many different flavors of paywall:

Much of the discussion that took place on the monetization panel — which featured Dick Tofel of ProPublica, Justin Smith of Atlantic Media, Raju Narisetti of News Corp. and Bob Bowman of Major League Baseball — was about the myriad ways in which media companies can charge for their content. Bowman argued that every media company should be charging its users, even if it is through some kind of “pro” version, and Smith announced that The Atlantic will soon be launching a content offering related to the magazine that will be subscription only, although he didn’t say what kind of content it would be.

Narisetti also talked a bit about his vision of a “reverse paywall,” which focuses more on membership benefits that readers could accumulate based on their engagement with a site — although Bowman said he thought this would just encourage readers to click on ads or perform other tasks in order to get something for free, and that advertisers would quickly see through this gaming and not be interested in advertising around it. Smith also pointed out that The Atlantic‘s event business produces a lot of revenue for the company, and therefore decreases the need for a strict paywall.

No one can agree on sponsored content:

On the panel that focused on the increasingly blurry line between editorial content and advertising, Felix Salmon of Reuters challenged Jon Steinberg of BuzzFeed, Kyle Monson of Knock Twice and Forbes chief operating officer Lewis D’Vorkin to define their terms — but the panelists spent most of their time debating whether “native advertising” of all kinds is inherently unethical or duplicitous in some way (the view held by Andrew Sullivan, who has railed against the phenomenon).

Steinberg maintained that the conventional wisdom that says average readers are confused — and in some sense misled — by sponsored content is hogwash, and that this is essentially a lie perpetrated by traditional media entities who continue to rely on banner advertising for their revenue. According to the BuzzFeed president, banner ads are a dying medium, and some form of sponsored content is the only real alternative. Monson, however, argued that if native advertising becomes too ubiquitous, readers will begin to ignore it the same way they currently ignore every other form of advertising.

Independence is a doubled-edged sword:

(L to R:) Andrew Sullivan, Editor, The Dish; Andrew Ross Sorkin, Columnist, NYT; Maria Popova, Writer, Brain Pickings; Tim Ferriss, Author, The 4-Hour Workweek paidContent Live 2013 Albert Chau / itsmebert.com

One of the highlights of the conference for many (including me) was a panel composed of superstar bloggers and authors Andrew Sullivan, Maria Popova, Andrew Ross Sorkin and Tim Ferris. Sullivan has famously bet his livelihood on going direct to his readers for financial support — although he maintained that he is not anti-advertising, as some have assumed. He said he is dedicated to that approach even to the point of not taking a salary until he can prove that the model works, and that he values his independence and his direct relationship with readers over the comfort of working for a large media entity.

Andrew Ross Sorkin, by contrast, has been able to build a fairly large team and business model for himself inside the New York Times — even though he could probably (or theoretically) have created something similar, and more independent, on his own. Sorkin said that his interest in remaining inside a large media entity stems in part from the resources it puts at his disposal, and partly from his commitment to the brand itself, since the paper took a large bet on him years ago when he created DealBook.

There was a lot more to the conference that I haven’t even touched on here — including a startup showcase featuring new platforms like Circa and Branch, a panel on the use of algorith-driven personalization with Mark Johnson of Zite and Aria Haghighi of Prismatic, a great look at the future of books with Dominique Raccah of Sourcebooks and Evan Ratliffe of Atavist, a discussion between Om and John Borthwick of Betaworks, and an interview with the architect of Aereo’s ongoing disruption of cable.

Thanks to all those who attended and to all of our speakers as well.

Post and thumbnail images courtesy of Albert Chau

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Speaking at PaidContent Live in New York on Wednesday, Tumblr CEO David Karp described the site as a creative platform where users are free to grow an audience and develop talent that has the potential to see success elsewhere, such as the 70 users who turned their blogging skills into book deals. Karp said the company saw three book deals for users last month alone, but the company isn’t viewing that as the only metric of success.

“What’s even more interesting to me than people going through traditional paths are people who are using those new emerging platforms,” he said. “What’s so exciting to me about Tumblr as a media network today is this new generation of creative commercialization tools that are being built on top of these other networks. People who don’t have to go to Harpers to publish the book deal, they can self-publish on Kickstarter instead.”

Karp’s focus on creativity is an idea that extends into the way the company is rolling out advertising. The company recently started rolling out mobile advertising, and is working on making that advertising fit within the existing Tumblr network.

“We focused on higher up in the funnel, the type of advertising that creates intent,” Karp said. “It gives room for the most creative advertisers to create their best work. I think we’ve started to prove it, and see really good examples of it.”

But Karp noted that Tumblr isn’t profitable yet — although he expects it eventually will be — and he noted he has supportive investors for the company, which most recently raised $85 million in venture funding back in 2011. The company gained notoriety recently when it shut down Storyboard, the experimental project in which it hired an editorial staff to highlight and aggregate the best content on Tumblr.

“It’s not a knock on that team at all. We hired a really brilliant team to do really good work. We gave it a shot, we gave it a year. And after a year, we decided it wasn’t the right tool for our toolbox,” Karp said. “It was working in some regards, but not in the we wanted to see it look.”

Tumblr isn’t that focused on the number of pageviews the site is getting, Karp said, although users create 90 million new Tumblr posts per day. Instead, Karp said the focus has moved to time spent on Tumblr — now at 14 minutes per day — and figuring out how to monetize that content as well as helping new users discover interesting content without picking favorites among the blogs.

“We want to give you the stuff you’re going to love on Tumblr, but we don’t want to say what great stuff on Tumblr is. We don’t want to say what great content is, or these are our favorite blogs. We don’t wan to color it too much or scare anybody off.”

Check out the rest of our paidContent Live 2013 coverage here, and a video embed of the session follows below:

A transcription of the video follows on the next page

Go to page 2 (of 2) on GigaOM .

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Austin is the second city to be getting the one gigabit service, and customers will soon (by soon, we mean middle of 2014) be able to live online at gigabit speeds. Hell, those who don’t want to pay get can 5 Mbps connections for free. Browsing one hundred times faster will cost money, but trust us, we love our 200 Mbps connection and we can tell you it is worth it.

Wondering what exactly Google Fiber can do for a city like Austin? There’s a few different views on Quora based on experiences from Kansas City residents, who just started getting the same service this past November. Of course, given that Austin is home to the South by Southwest festival, it’s likely that bigger technological strides will be made. We wouldn’t be afraid to bet on Austin blossoming into the next Silicon Valley: You heard it here first.

Tumblr edits its Edit team:  It made perfect sense to us when Tumblr set up an editorial team and decided to promote writing on its platform. However, Tumblr turned the lights out on its editorial department this week after less than a year of operation. Called Storyboard, the content curating “experiment” launched in 2012 with the goal of editorializing great stories from Tumblr’s “living, breathing community.” We were moved and entertained by many of these stories — from surviving sexual assault to an exposé on Cumberbitches — but Storyboard, when you really nail it down, was an avenue to repackage, repurpose, and highlight the talent that thrives on its own platform.

David Karp, Founder and CEO, Tumblr (c) 2012 Pinar Ozger pinar@pinarozger.com

Apparently the world didn’t much care about this approach. From the get-go, Storyboards’ waters were tainted by the ever-so-slight flavor of self promotion — in December, New York Capital’s Joe Pompeo wrote a great piece that explored whether Storyboard was journalism or next-gen marketing — and maybe that’s why Storyboard didn’t (or couldn’t) survive. Tumblr is already struggling to make money, and it seems the only way Storyboard could contribute to the company’s bottom line was by advertorial-izing content from higher-level partners like Time, Bon Appetit, or New York Magazine, which would further blur the lines between journalism and marketing.

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The iconic film critic Roger Ebert passed away this week after a box office-busting 46-year-long career in Hollywood, and while he may have lost the ability to speak in 2006, our own Mathew Ingram shares how Twitter allowed him to share his thoughts, ideas, and opinions with a captivated audience.

A Knowledge Economy shouldn’t ignore the invisibles: Or at least that is what we think. So when Mark Zuckerberg and a handful of other tech luminairies launched FWD.us, a public interest group aiming to make change in the areas of education and immigration, we weren’t afraid to speak up about the bigger change that awaits our society.

While the group may be noble in its causes, FWD.us is not without its problems, especially when it comes to the hot-button topic of immigration. Seems to us that Zuckerberg and Co. aren’t seeing the big picture — or the rest of the world — outside their Silicon Valley bubble. Yes, engineers of technology are important, but if you forget to include the rest of the population in your immigration discussion, then the effort is self-serving and not all that social.

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Read this and other in-depth articles on GigaOM’s Flipboard channel

In his post, Karp (who will be joining us at our paidContent Live conference on April 17) said that the idea behind the project was to create an editorial team of “experienced journalists and editors assigned to cover Tumblr as a living, breathing community” and to “tell the stories of Tumblr creators in a truly thoughtful way.” The Tumblr founder went on to say that:

“After hundreds of stories and videos… we couldn’t be happier with our team’s effort. And as Tumblr continues to evolve, we’ll always be experimenting with new ways to shine light on our creators [but] what we’ve accomplished with Storyboard has run its course for now, and our editorial team will be closing up shop and moving on. I want to personally thank them for their great work.”

The Storyboard team included Sky Dylan-Robbins, executive editor and former Newsweek/Daiy Beast staffer Jess Bennett — who posted on her own Tumblr that the group had “redefined journalism” and that she was “drunk on a plane” — editor-in-chief Chris Mohney and Christopher Price. A number of outlets wrote about Tumblr’s ambitions with the unit, which did what Mohney called “marketing as journalism.”

Although Tumblr has posted some fairly large traffic numbers, with more than 140 million unique visitors and 20 billion pageviews, the company has struggled to generate revenue — only recently launching an advertising program for its mobile app, after a long period of rejecting such money-making measures — and has promised that the network would be profitable this year.

Post and thumbnail photo courtesy of Pinar Ozger

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Path has been noted for its design on mobile, and both Facebook’s Home on Android and Tumblr’s new Android design share navigation features with the social network. The new Tumblr navigation lets a user tap on the compose button to bring up a variety of options for blogging:

The company has over 200 million visitors per month and 18 billion pageviews, and CEO David Karp will be speaking with my colleague Mathew Ingram at PaidContent Live next week in New York about where the company is headed. Karp spoke at our Roadmap conference in November, where he talked about the challenges of good design on the company’s platforms, saying that it comes down to having a team that would personally want to use its own products.

“Good products are built by people who want to use it themselves,” Karp said at the time, pointing to Apple’s Steve Jobs and Instagram’s Kevin Systrom as examples. Karp also said that for many users, the app’s design serves as a form of self-expression, so it’s crucial for the company to get it right.

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Chief technology officer Eric Feng said in an interview prior to the launch of the new version that this is much more than just an evolution of Flipboard — it’s a major push into a whole new area, namely curation and publishing of content by individual users. “It’s one of the most ambitious efforts we have ever undertaken,” said the former CTO of Hulu. “It’s been more than 18 months since the inception of the idea, so this is a pretty big deal for us. We were originally focused on discovery and filtering of content, but now we are moving into curation in a big way.”

Flipboard has always had curated topics such as technology and sports, where the service uses a combination of human editors and algorithms — based on frequency of sharing and other metrics — to highlight specific content. In effect, the new tools allow any Flipboard user to take on the same role as an editor and create their own magazine around a topic, and share it with other users.

Reader magazines get promoted in Flipboard

In a nutshell, users with the new features (which are available only for iPhone and iPad currently, but will appear in an Android version soon, according to the company) can simply click a “plus” sign next to a blog post or article they are reading — as well as any video or audio content that appears in their stream — and add that piece of content or “flip it into” to a magazine, which will then be available to them or any other user who searches for that topic.

And Flipboard isn’t just giving users that ability within the app: the service is also launching a bookmarklet that will allow users to pull in content from anywhere on the web — whether it’s a blog post, a news website or Twitter and Facebook — and add it to their custom-created magazine. In a sense, Flipboard is trying to capitalize on the same curatorial impulse that makes people create collections about specific topics on Pinterest or re-blog photos on Tumblr, and in many ways this move is a shot across the bow of those other services.

It’s also clearly a threat to the existing publishing industry, since a Flipboard user can now create their own custom publication using the content that comes from dozens of different magazines, blogs, websites and other sources. So Flipboard is trying to bring publishers in as well and get them to create their own custom magazines — such as a magazine about the Beatles created with archival content from Rolling Stone. It has even built e-commerce functionality into the app so users can click and buy directly from within an article or ad.

But the most subversive aspect of the new features from a media-industry point of view is that they can be used by anyone — including advertisers. If an advertiser can create their own magazine by pulling in their own editorial content as well as content from other sources, and build e-commerce functionality into it, then it gives new meaning to the idea of brands as publishers and media entities.

Bringing users into the editorial process

The new version of the app will have a section called “By Our Readers” in the table of contents, which will include a mix of magazines that have been created by users on a variety of topics — a small group of beta testers (including GigaOM) have had access to this function for several months. As with the other Flipboard sections, some of the magazines that are highlighted will be chosen based on the number of times they have been shared, and others will be chosen by editors.

Like most news-aggregation and recommendation apps such as Pulse and Zite (which is owned by CNN), Flipboard users have always had the ability to share specific stories or items, but the new magazine-creation features effectively allow a user to spend some time creating a collection of content they can then share all at once. Feng used the example of an editor who is getting married soon and created an entire magazine with content about weddings.

In a way, the new version of the app also picks up where Google Reader and other RSS services left off. Instead of just passively consuming text and photos in a chronological timeline or series of folders, Flipboard turns everything into part of a magazine-style experience. According to Feng, many users have already imported their Google Reader feeds into the app, and those feeds will be available once Google sunsets the service in July.

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