Apple is buying mobile advertising network Quattro Wireless for $275 million, according to well-connected Silicon Valley site All Things Digital.
TechCrunch also reports that a deal has been done between Apple and Quattro, and suggests that Microsoft may have also been sniffing around.
The acquisition would appear to confirm reports last November that Apple had been one of the suitors for rival mobile ads firm AdMob, which was eventually bought by Google for $750 million.
Update: Quattro has now confirmed the deal in a blog post on its website, but did not give a purchase price.
Apple spokesman Steve Dowling told Reuters: "We look forward to developing exciting new opportunities that will benefit Quattro Wireless customers in the future."
It remains to be seen what Apple's ownership of a mobile advertising network will mean for iPhone developers.