Apple has confirmed that it is acquiring Beats Electronics and Beats Music for $3 billion, scaling down the amount from the previously rumored price.

The company announced the purchase in a press release on Wednesday afternoon, making the deal its largest acquisition ever. It will include both the headphones/electronic division, as well as the newly launched (and possible future iTunes threat) music streaming service.

“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. “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.”

As expected, Beats co-founders Dr. Dre and Jimmy Iovine will be joining Apple in new, yet-to-be-announced executive roles.

Fueled by Ramen founder John Janick will replace Iovine as chairman and CEO at Interscope Geffen A&M.