Apple to buy Beats for $3b

Apple will buy Beats for about $3 billion and bring recording mogul Jimmy Iovine into its ranks, in a bid to make headway in the fast-growing music-subscription market.

Through the acquisition, the iPhone maker also gains a line of high-end headphones popular with a young and urban demographic.

As expected, Beats co-founders Iovine and rapper Dr Dre will join Apple as part of the acquisition.

The deal is seen as Apple’s effort to jump-start a so-far uneven attempt to make headway in music streaming, the fastest-growing segment of the market. Pandora Media Inc and Spotify have raced ahead while Apple’s eight-month-old iTunes Radio has not made much of an impact .

The transaction is expected to close in the fourth quarter, Apple said on Wednesday. Shares in the company stood largely unchanged in after-hours trade.