Beats is best known for its headphones which have been gaining popularity
Apple has confirmed it will buy headphone maker and music-streaming service provider Beats Electronics.
The deal is worth a total of $3bn (£1.8bn), and is thought to be Apple's biggest acquisition. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr Dre will join the technology giant.
Apple boss Tim Cook said the deal would allow the firm to "continue to create the most innovative music products and services in the world".
There had been speculation that Apple might drastically cut
its offer price for Beats or pull the deal altogether, after a video of
Dr Dre describing himself as hip hop's first billionaire leaked online.
But the deal has now been confirmed for only $200m less than what had originally been reported.
The press release announcing the tie-up talks of Beats' "premium sound entertainment," but there has been criticism of its headphones' sound quality.
However, there's no doubting their popularity or the skill of Beats' co-founders Jimmy Iovine and Dr Dre in building up the brand.
It's questionable whether Apple's co-founder Steve Jobs would have been willing to share the limelight with two such outspoken personalities.
But the challenge for the more reserved Tim Cook is to bring the two firms' very different cultures together, and to make the most of the Beats brand, as he delivers on a promise to launch new products this year.
But the deal has now been confirmed for only $200m less than what had originally been reported.
The press release announcing the tie-up talks of Beats' "premium sound entertainment," but there has been criticism of its headphones' sound quality.
However, there's no doubting their popularity or the skill of Beats' co-founders Jimmy Iovine and Dr Dre in building up the brand.
It's questionable whether Apple's co-founder Steve Jobs would have been willing to share the limelight with two such outspoken personalities.
But the challenge for the more reserved Tim Cook is to bring the two firms' very different cultures together, and to make the most of the Beats brand, as he delivers on a promise to launch new products this year.
Beats was founded by music
producer Jimmy Iovine and the hip-hop star Dr Dre and until recently was
best known for its headphones.
It started a subscription-based music streaming service earlier this year.However, Apple already has its own iTunes store which is the world's largest music download service. It also launched iTunes Radio last year.
That has made some industry watchers question the move.
Commenting on the deal, Beats co-founder Jimmy Iovine said: "I've always known in my heart that Beats belonged with Apple."
"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."
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