Apple News 2014: Tech Giant to Buy Beats for $3 Billion

The iPhone maker has finally confirmed rumors about the company buying Beats Electronics in a multi-billion dollar deal, Mashable reported. This will be it's "largest acquisition" in its history.

"Apple is buying the two companies for a purchase price of about $2.6 billion and approximately $400 million that will vest over time. Beats cofounders Jimmy Iovine and Dr. Dre will join Apple. Rumors of the acquisition surfaced earlier this month," the tech news site said.

This would also mean that Dr. Dre will officially become the first billionaire rapper in the world, as previously speculated by CNBC.

"Andre Young, aka Dr. Dre, is ranked second on Forbes' list of the wealthiest hip-hop artists of 2014 with an estimated wealth of $550 million. But if Apple's acquisition gets the green light, it could propel him to the number one spot, surpassing Sean Combs, aka Puff Daddy, who has a net worth of $700 million," the news source predicted.

The New York Times reported that Beats will remain a separate brand from Apple's. "Apple will offer both Beats's streaming music service and premium headphones," the publication said. "Apple said iTunes, which sells individual songs and albums and offers a streaming radio service, would be offered alongside the Beats music service."

This acquisition could help the Cupertino-based company have access to "additional talent and resources" for improving hardware design, such as those for wearable devices.

"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 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."

Iovine, for his part, said that "Beats belonged with Apple" and that the innovative tech firm served as Beats' inspiration when they first started out.