The rumor mill was vindicated Wednesday afternoon when Apple provided confirmation of the worst kept secret in recent memory. Apple has agreed to acquire Beats Music and Beats Electronics, the streaming music service and headphones company co-founded by recording artist Dr. Dre.
Apple is acquiring the two companies for a grand total of $3 billion.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”
The acquisition is expected to jump all essential regulatory hurdles and close later this year.
“I’ve always known in my heart that Beats belonged with Apple,” said Beats co-founder Jimmy Iovine. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”
Apple is expected to dish more insight on its latest acquisition next week when the company’s Worldwide Developers Conference commences in San Francisco.