Story from OSX Daily:
If you don’t use the Newsstand app in iOS there isn’t much reason to keep it around on the home screen, but for whatever reason Apple has made it impossible to move into a folder. A past bug let you move it, but that’s been patched with more recent versions of iOS. Now for the good news, a new tweak lets you dump the Newsstand icon back into a folder, if you don’t mind a few caveats: first, once Newsstand is in the folder it’s basically unusable because it will crash, and second, you’ll have to connect your iPhone, iPad, or iPod touch to a computer and launch an app to put it into a folder in the first place. If you’re ok with those limitations, grab StifleStand and connect your iOS device to your Mac or PC, which will dump Newsstand into a folder called “Magic”.
Moving Newsstand out of the folder makes it usable again, but StifleStand will have to be ran again to put it back into a folder. Not exactly convenient, but until Apple gives the native ability to move Newsstand around at will, it’ll do. This app made the rounds recently, but it was originally limited to Mac users. Now with a Windows version available, anyone can finally hide the Newsstand icon. Thanks to MacStories for the discovery.
UPDATE: The Developers site is down? Download it here before Apple has the developer mysteriously shot or stuffed into a trunk somewhere.