Watch Steve Jobs Chatting With Dr. Dre About iTunes

Steve Jobs was a fan of Beats co-founder Jimmy Iovine, Iovine told Inc's Burt Helm. Iovine says that Jobs called him a few months before he died, saying, ''You know, you're one of the few people--if not the only person--who came out of software and made a piece of hardware successfully.'"

Apple and Iovine had been talking about a streaming subscription music service since 2004, too, according to Iovine. The newly-launched Beats Music service is one of the reasons Apple may have bought Beats, according to the pundits.

Plus, the guy that hired Jony Ive at Apple, Robert Brunner, is the same designer who worked on Beats products.

Jobs also knew Beats co-founder Dr. Dre. Here's a video of Jobs interviewing Dre on stage during an Apple event, unearthed by by Mark Gurman of 9to5 Mac.

They discussed iTunes.

Neither company has confirmed the deal yet, but some say a YouTube video posted on Friday of Dr. Dre calling himself "the first Hip Hop billionaire" is Dr. Dre confirming the deal.

The video is a celebration where Dre is talking to the camera in a room full of friends. It's filled with NSFW language, so instead of posting it, we'll just offer you the link.