Apple is believed to have made a move to buy Beats Electronics, a company known for its headphones and music streaming service, for $3.2 billion, making it the company's biggest acquisition to date. The distinctive high-end headphone maker was co-founded by music producer Jimmy Iovine and hip-hop star Dr. Dre.

Dr. Dre made a video appearance on Facebook in which he declares himself the "First billionaire in hip-hop" on the West coast. It seems that Dre's stake in Beats is somewhere in the neighborhood of 20-25 percent, meaning that after capital gains taxes the deal could net him somewhere near $800 million.

According to a report, Apple is interested in acquiring the firm for its streaming music service, which was launched this year, as well as the famous audio equipment produced by the company. Apple has shown its interest in more acquisitions, as they have bought 24 companies in the past 18 months. Tim Cook added that Apple is "on the prowl" and is not shying away from large acquisitions.

Aside from the current product and service offerings of Beats, Apple is interested in the expertise of the company in developing wearable products as Apple is closing in on launching more portable gadgets, including the much anticipated iWatch. This acquisition is not surprising in the high-end tech industry as several other Silicon Valley companies were recently acquired as well, such as Google's purchase of Nest Labs for $3.2 billion, Facebook with WhatsApp Messenger for a staggering $19 billion and then $2 billion for VR firm Oculus.

Apple executives Tim Cook and Eddy Cue have repeatedly met with Beats' Iovine to discuss music streaming services. The two companies are not unfamiliar with partnering up with each other as Beats headphones and other products have been available in Apple retail stores. Beats was established in 2008 and holds the biggest share of the headphone market.