AT&t and Facebook will combine to buy advertising networks for an undisclosed amount, according to people familiar with the matter.
The deal is subject to regulatory approval, which will be announced as soon as Friday, the people said, asking not to be identified because the details are private.
Facebook, Google and Instagram will also join the deal.
The acquisition of ad networks could bolster AT&Ts advertising businesses and give it more leverage to compete with Facebook, Google, and others, according the people.
AT&ts ad networks currently represent less than 10% of the advertising revenue on the platform.
The deals will be the largest acquisition of advertising networks in history, the sources said.
Facebook and Google have spent the last few years consolidating their advertising business.AT&T bought advertising networks, which include NBCUniversal, for $10.4bn in 2012, according a report by The Wall Street Journal.
The companies are now also in the process of buying NBCUniversal’s digital media properties including NBC, NBCUniversal and NBCUniversal Studios.AT &T has said it will use the combined networks to compete more effectively with Google and others.
The combination is expected to give AT&TS more advertising visibility and scale, the reports said.
AT &T also has an existing partnership with NBCUniversal that could also be used to leverage more revenue from the merger.