The deal between Ogilverties advertising company and Instagram could see it acquire the largest ad platform in the world, according to sources familiar with the transaction.
The deal, which is valued at $1bn, is expected to close by the end of next year and was first reported by Business Insider.
The Ogilverts deal is likely to be more than an acquisition, as the company is expected as part of a deal that would also see it buy Instagram ad and digital product businesses, which could result in Ogilvys new ad platform, the source told Business Insider in a statement.
The news comes on the heels of Instagram taking on an advertising arm of Snapchat and the news of the launch of an app for iPhones and iPads that will allow users to see, share and edit photos directly from their phones.
This week Instagram announced a new product that will give users the ability to create and share photos, videos and GIFs from their accounts.