Apple has finally confirmed it will purchase the popular Beats Electronics brand, which specializes in headphones, earbuds, and an online music service. Rapper Dr. Dre and music industry veteran Jimmy Iovine will join Apple working under Eddy Cue, head of Apple's Internet services.
The deal was originally expected to close at $3.2 billion, though will be slightly cheaper than originally expected. Apple will pay $2.6 billion cash and offer $400 million in stock, with deal approval expected later in 2014. However, Apple officials were reportedly angry when a drunken Dr. Dre, out celebrating the deal, boasted about becoming "the first billionaire in hip-hop," which is one of the reasons it took so long for acquisition confirmation.
Meanwhile, iTunes will operate alongside the Beats Music offering, with Apple pledging to operate both services independently.