Punchkick reported earlier on the speculation surrounding Apple’s acquisition of Beats; and late yesterday, Apple formally announced it has agreed to purchase Beats Electronics for $3B. The tech giant’s official press release reads:

“Apple is acquiring the two companies [Beats Music and Beats Electronics] for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.”

This acquisition will be the largest that Apple has ever made, and spotlights Beats co-founders Jimmy Iovine and Dr. Dre as the new darlings of Silicon Valley. Tim Cook, Apple’s CEO, believes music technology plays a crucial role for Apple. By continually investing in music and working with extraordinary teams, Apple aims to create the most innovative music products and services in the world.

Sharing a laugh with Jimmy, Dre, and @cue. Excited to welcome the #Beats team to #Apple. It’s all about the music. pic.twitter.com/ZwyWgHFwhO

— Tim Cook (@tim_cook) May 28, 2014

Apple is said to be in a phase of reinvention—they’re building a product pipeline that could include a health tracker iOS app, Healthbook, as well as the much anticipated smart home system. Now add in Beats’ consumer headphones and music subscription service, and Apple is becoming “exciting again” according to Mashable.

Both record producer Jimmy Iovine and hip-hop artist Dr. Dre are rumored to appear at WWDC next week and will take on leadership roles at Apple. More will be announced at WWDC, which takes place on June 2-6 in San Francisco.