Microsoft announces $7.5 billion GitHub acquisition

Helen Aguilar
June 5, 2018

Facebook, Apple, and Google all use Github, but few other companies contribute as much as Microsoft, which has more than 1,000 employees actively pushing repositories to the service.

Microsoft said it was paying $7.5bn (£5.6bn) in stock to achieve the deal, which is due to close before the end of the year.

'We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform, ' Nadella continued.

Specifically, Microsoft says that it wants to grow enterprise use of GitHub and use it as a platform to deliver its tools to more developers. Many open source projects host their code on GitHub, and also use the platform to plan project roadmaps, track issues, and collaborate via both issue tracking and code-driven discussions.

GitHub, last valued at $2 billion in 2015, preferred a sale to an initial public offering (IPO), and was particularly impressed by Nadella, according to Bloomberg.

"Most importantly, we recognize the responsibility we take on with this agreement", said Microsoft CEO Satya Nadella, according to The Verge.

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Murmurs about the acquisition bubbled up late last week as the CEO-less GitHub was reportedly in talks with Microsoft about a sale.

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, U.S., on June 14, 2016.

Furthermore, Microsoft Corporate Vice President and founder of Xamarin Nat Friedman will assume the role of GitHub's new CEO while the current CEO Chris Wanstrath will become a Microsoft technical fellow. It also helps Microsoft, which is increasingly relying on open-source software, to add programming tools and tie up with a company that has become a key part of the way Microsoft writes its own software.

Some developers are upset at the deal, concerned that Microsoft will lock GitHub down to not work with any competitors' technologies.

Profits from GitHub will be reported under Microsoft's Intelligent Cloud division in financial reports. But Visual Studio, Visual Studio Code, and other Microsoft developer offerings will no be tailored to work natively with the service. "Nat has a ton of experience with software and the open source software community, having co-founded Xamarin and worked on numerous open source projects over the years, and is the ideal person to help GitHub grow and continue to make life better for developers".

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