Microsoft thinking of buying Github

Laverne Mann
June 5, 2018

Microsoft announced an agreement to acquire GitHub for $7.5 billion.

News of the deal sent shares of Microsoft higher by 0.4% to $101.24 on Monday afternoon. It now has more than 28 million users and hosts over 85 million code archives known as repositories.

GitHub is a platform where software developers can go to host and review each other's code. Rumors of Microsoft's acquisition first leaked out late on Friday, and those stories added that the privately owned GitHub's was last valued at just $2 billion. Microsoft corporate vice president and founder of Xamarin, Nat Friedman, will become the new GitHub CEO. It is unclear whether talks are still ongoing, but this person said that GitHub's price for a full acquisition was more than Microsoft now wanted to pay. Thus GitHub has made a decision to join up with Microsoft, rather than going public.

According to Bloomberg, GitHub preferred selling the company to going public and chose Microsoft partially because it was impressed by Nadella. Previously, in the early 2000s for example, Redmond was critical of the open source approach to software development.

On top of its core Git foundation, GitHub has built its own workflows ("pull requests") to ease the merging of changes from one repository to another.

The all-stock deal is expected to close by the end of 2018.

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Open-source programming enables designers to tinker with, enhance, and offer code - an approach that undermined Microsoft's plan of action.

GitHub will continue to operate as is, with its 28 million-strong developer community given complete freedom to use any operating system or tools that they want. A partnership would give Microsoft another connection point to the developers to build applications on its various platforms, including the Azure cloud.

"We both believe that software development needs to become easier, more accessible, more intelligent, and more open, so more people can become developers and existing developers can spend more time focusing on the unique problems they're trying to solve", Wanstrath said.

The code repository has been used by some of software development's biggest names including Apple, Google, and Amazon. It has also struggled for months to find a replacement for CEO Chris Wanstrath.

He appealed to developers' sense of trust in GitHub, saying Microsoft will work to make the company even better by using the resources at its disposal.

Other reports by MaliBehiribAe

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