Microsoft to acquire GitHub

Microsoft to acquire GitHub

Microsoft to acquire GitHub

Following earlier reports of talks, Microsoft has acquired web-based hosting service and code repository company, Github, Bloomberg reported Monday, June 4.

Bloomberg first reported news of the transaction, and Microsoft has now confirmed it's buying GitHub, the leading online service that lets developers store and collaborate on code development.

GitHub supplies coding tools for developers and calls itself the world's largest code host with more than 28 million developers using its platform. The deal, which will come under regulatory review, is expected to close later this year, Microsoft said.

'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.

It added that Github is now used by more than 28 million developers, who in turn represent more than 1.5 million organisations across a range of industries.

The old guard tech giant has long viewed open-source software, which allows developers to change and improve upon shared code, as a threat to its core business model.

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 a year ago.

"Most importantly, we recognize the responsibility we take on with this agreement", Nadella wrote. At one point of time, Google's senior VP of ads and commerce and Microsoft's exec Nat Freidman were under consideration for the GitHub CEO's role, a source told Business Insider. GitHub's current CEO Chris Wanstrath will become a Microsoft technical fellow, reporting to executive vice president Scott Guthrie. And Microsoft has been interested in GitHub for a few years.

Git is far and away the most popular version control system, clouds are mostly computers, and Microsoft is the most active organization on GitHub in the world.

Friedman said plainly that this would not be in the cards: GitHub has won over 24 million developers because of its openness to all tools and technology, and it wouldn't do to hamstring it now. Microsoft seemingly understood that GitHub was the preferred platform for developers and made a decision to acquire it instead of competing against it.

"So as we look to the next decade of software development and beyond, we know it's all about the developer".

New deals demonstrate Microsoft's push away from Windows as it doubles down on innovation and growth markets like the cloud, IoT, enterprise collaboration and cybersecurity.

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