AOL's purchase of Tacoda has been given the go-ahead from U.S. regulators, reports Reuters.

The Federal Trade Commission said it looked at the proposed purchase and found no reason to spike it. The deal, announced in July, supports AOL's move to a free, ad-supported model.

The price AOL paid for Tacoda, which provides ad-targeting software, was not officially disclosed. Some sources peg it at $275 million.