Microsoft acquires GitHub for $7.5 billion
- Author: Terrell Bush Jun 05, 2018,
Jun 05, 2018, 0:46
News of the deal sent shares of Microsoft higher by 0.4% to $101.24 on Monday afternoon.
More than 28 million developers already collaborate on GitHub, and it is home to more than 85 million code repositories used by people in almost every country.
The prize: GitHub is used by over 28 million developers and holds over 85 million "repositories" of code.
Microsoft's somewhat recent open source strategy - of getting all buddy-buddy with open source developers and adding support for Linux - runs counter to the Microsoft of the early 2000s, when then-CEO Steve Ballmer said, "Linux is a cancer that attaches itself in an intellectual property sense to everything it touches".
Microsoft has confirmed that they will officially be acquiring the developer network, GitHub.
Under the deal, GitHub will become part of Microsoft's cloud computing unit, and its founder and CEO, Chris Wanstrath, will be a technical fellow at Microsoft.
Microsoft was quick to calm any worries of change that GitHub's community of users would have about the acquisition. The future of software development is bright, and I'm thrilled to be joining forces with Microsoft to help make it a reality...
Moody's analyst Richard Lane said the deal reflects Microsoft's "ongoing pivot to open source software, seeking to further broaden its large and growing development community". (MSFT) has agreed to buy software developer platform Github Inc.in an acquisition worth $7.5 billion. While GitHub's losses have been significant - it lost $66 million over three quarters in 2016 - it had revenue of $98 million in nine months of that year. We'll see how it all shakes out in due time, but for now, head down to the comments section and let us know what you think now that the deal is official.
"Most importantly, we recognize the responsibility we take on with this agreement", Nadella said.
Launched in April 2008, GitHub has since become a huge site for software developers to upload and share their code and projects, especially when it comes to uploading open-source projects.
"GitHub will retain its developer-first ethos and will operate independently to provide an open platform for all developers in all industries". The short version: GitHub will maintain its independence as a wholly-owned subsidiary, but have access to Microsoft's prowess in both engineering and sales. The acquisition is said to have started as a co-marketing initiative, which grew into a discussion of an investment from Microsoft, before ultimately transforming into an outright purchase.