After weeks of rumors, Apple has officially announced its acquisition of Dr. Dre’s Beats Electronics. The deal is said to be valued at $3 billion. 

From Forbes:

[The deal is broken down like this:] $2.6 billion cash up front and approximately $400 million in stock that will vest over time. As part of the deal, Beats co-founders Dr. Dre and Jimmy Iovine will join Apple AAPL +1.52% in undisclosed roles.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” CEO Tim Cook said in a statement. “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.”

Read more at Forbes

The acquisition is the larger ever in the history of Apple, and the largest since it brought back Steve Jobs in 1997 through a $400 million purchase of NeXT.

Beats has an estimated annual sales of $2 billion, just more than 1% of Apple’s $171 billion revenue last year.

The $3 billion purchase price includes Beats Music, the sister company that runs a streaming music service via subscription. Dr. Dre ranks among the top five wealthiest artists. The list includes Jay Z, P.Diddy, 50 Cent and Baby.

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