I'll believe it when I see it. Yet it's not exactly surprising. Moving the AppleTV to the iPhone OS would almost seem to be a no-brainer, though I'm not too sure just how effective the iPhone OS is with a remote control as your input device.
They don't seem to think it will be announced at the World Developer Conference on June 7th, so there's really nothing to see here...yet.
Engadget: The next Apple TV revealed: cloud storage and iPhone OS on tap... and a $99 price tag