Some news reports are referring to the company as OSM for Open Source Media.

OSM will link to individual blog postings and highlight the best contributions, chosen by OSM editors, in a special section. Bloggers will be paid undisclosed sums based on traffic they generate.

The ad-supported OSM site will also carry news feeds from Newstex, which in turn receives stories from The Associated Press, Knight-Ridder/Tribune News Service and other traditional media organizations.

I hope they do well. I think it's great that they are financially compensating both bloggers who put their blogs under the PJ umbrella and those who do original reporting and commenting for them.

Here's how it's going to work at first:

The site will have links to the top news headlines of the day, as reported by the AP and other establishment news sources. Here's the difference: alongside each news headline, Pajamas Media will link related blog posts that their editors consider to be the most interesting or insightful out there. And as the story evolves, so will the blog links. Pajamas Media's coverage and commentary will be worldwide and around-the-clock. They already have blogger editors lined up in Europe and Australia.

If all proceeds according to plan, the eventual goal is to replace the established media sources with a network of what Johnson and Simon call "citizen-journalists."

....Pajamas Media will not restrict their links to participating blogs, however. Their editors will scour the Internet for anyone with an intriguing spin or fresh facts on a story or event, regardless of their ideology or affiliation.

More here.