Today Apple Inc. (NASDAQ:AAPL) officially announced that it has purchased Beats Electronics, the headphones maker co-founded by Dr. Dre, for about $3 billion. We’ve been hearing non-stop rumors about this acquisition since earlier this month. The technology giant made it official in a press release on its website today, although several people had speculated that the announcement would not be made until Apple’s Worldwide Developers’ Conference (WWDC) next week.

Apple buy Beats AAPL

Dr. Dre to join Apple

As expected, Beats co-founders Dr. Dre and Jimmy lovine will join Apple Inc. (NASDAQ:AAPL) as acqui-hires. In addition to the Beats headphones, speakers and audio software company, Apple is also buying Beats Music, the streaming music company. The total purchase price for both companies was around $3 billion. It includes a payment of $2.6 billion right now and an additional $400 million that will vest over time.

“I’ve always known in my heart that Beats belonged with Apple,” said Beats co-founder Jimmy Iovine in a statement. “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.”

The deal is still subject to regulatory approvals. Apple Inc. (NASDAQ:AAPL) expects it to close in the fiscal fourth quarter, which would be the September quarter.

Why Apple bought Beats

In Apple Inc. (NASDAQ:AAPL)’s press release, it said the Beats “b” because the music and sports industries “brand of choice” within only five years of the brand’s launch. The company said it is the market leader in premium headphones and notes that big music starts like Lady Gaga have designed their own custom Beats headphones and speakers.

“Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services, in a statement. “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.”