Microsoft acquires GitHub for $7.5 billion

Microsoft acquires GitHub for $7.5 billion

Microsoft acquires GitHub for $7.5 billion

Github, based in San Francisco, is an online platform that allows coders to collaborate with each other on their work. The deal, which will come under regulatory review, is expected to close later this year, Microsoft said.

Microsoft says that it will retain GitHub's status as an "open platform", being free to use for open source projects and agnostic towards programming languages as well as development tools.

"Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation", Nadella said in a statement. One person familiar with the situation explained that this evolved into a discussion around an acquisition, giving Microsoft nearly direct access to the knowledge of 27 million software developers and 80 million repositories of code. GitHub is the code-repository company popular with many software developers.

GitHub was last valued at $2 billion in its last funding round in 2015, but the price tag for an acquisition could be $5 billion or more, based on a price that was floated past year.

"Most importantly, we recognize the responsibility we take on with this agreement", said Microsoft CEO Satya Nadella, according to The Verge. "By integrating GitHub and Microsoft, they extend their open source leadership, and I hope they continue the momentum GitHub's had so far".

Over the past few years, GitHub and Microsoft were having conversations to pursue acquisition but nothing materialized.

As a result of this change Nat Friedman, founder of Xamarin and Microsoft Corporate Vice President, will be serving as GitHub's CEO.

It sounds very much like Microsoft is trying to make a new push for developers to use its tools and services, including its cloud systems, with this purchase of GitHub.

Over the weekend, reports indicated that Microsoft was interested in buying GitHub, the web-based repository hosting service. Microsoft, a public company worth $760 billion, has a long list of acquisitions, including networking site LinkedIn in 2016 and Skype in 2011.

As Bloomberg reports, Microsoft is believed to have acquired GitHub.

The deal will reportedly be announced tomorrow (Monday, June 4).

We both believe GitHub needs to remain an open platform for all developers.

Related news