Apple is confirmed to buy Dr. Dre¡¯s headphone company Beats Electronics and music streaming service Beats Music for $US3 billion.

As part of the deal, Beats co-founders Dr. Dre and Jimmy Iovine will join Apple. Thus, Iovine will bid farewell to Interscope Records, the label he co-founded, to work with the technology giant.

A long-time friend of Steve Jobs, 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.¡±

Apple will acquire the two companies for a total of $US3 billion, $US2.6 billion in cash and $US400 million in stock, and will continue to use the Beats brand.

¡°Music is such an important part of all of our lives and holds a special place within our hearts at Apple,¡± said Apple CEO Tim Cook. ¡°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.¡±

With their constant release of new, bigger and better electronic products like the iPad and iPhone, Apple has solidified itself as one of the world¡¯s largest technology companies. However, the company is yet to introduce a breakthrough product in the wake of Steve Job¡¯s death in 2011. Thus, The Beats deal is Mr Cook¡¯s way of pushing Apple into unfamiliar territory and putting his stamp on the company.

Senior Vice President of Internet Software and Services, Eddy Cue said that music is a vital part of the Apple¡¯s DNA. ¡°The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years,¡± said Cue.

The lovechild of rap star Dr. Dre and entrepreneur and Interscope Records Chairman, Jimmy Iovine, Beats Electronics was founded in 2006, with the first set of headphones hitting shelves in 2008. Last year Beats made $US1.2 billion, earning Dr. Dre $US200 million, boosting his net worth to $US550 million and making him the richest hip-hop artist in the world.

In the short five years since its conception, the Beats ¡°b¡± trademark has become a pop culture symbol in the US, with pop icons from Lady Gaga to Nikki Minaj designing their own customised Beats headphones and speakers. And so, following the acquisition of Beats products, consumers should expects to see a lot more of the trademark ¡°b¡±, as Beats products will be available for purchase in more countries via the Apple Online Store, Apple¡¯s retail stores and select Apple Authorised Resellers.