Microsoft confirms it’s acquiring GitHub for $7.5 billion
Microsoft is acquiring GitHub. After reports emerged that the software giant was in talks to acquire GitHub, Microsoft is making it official today. This is Microsoft CEO Satya Nadella’s second big acquisition, following the $26.2 billion acquisition of LinkedIn two years ago. GitHub was last valued at $2 billion back in 2015, and Microsoft is paying $7.5 billion in stock for the company in a deal that should close later this year.
GitHub is a large code repository that has become very popular with developers and companies hosting entire projects, documentation, and code. Apple, Amazon, Google, and many other big tech companies use GitHub. There are 85 million repositories hosted on GitHub, and 28 million developers contribute to them. GitHub will now be led by CEO Nat Friedman, the founder of Xamarin, who will report to Microsoft’s Cloud and AI chief Scott Guthrie. GitHub CEO and co-founder Chris Wanstrath will now become a technical fellow at Microsoft, also reporting into Guthrie.
It’s easy to imagine why Microsoft would want to acquire GitHub. Microsoft killed its own GitHub competitor, Codeplex, in December and is now the top contributor to GitHub, Microsoft now has more than 1,000 employees actively pushing code to GitHub repositories.
Trust and respect won’t be easy for Microsoft to win, though. Developers are already voicing their concerns about Microsoft’s past abuses, and the company’s botched acquisition of Skype and Nokia’s phone business.
GitLab, a GitHub competitor, claims it has seen a 10x increase in the amount of developers moving their repositories over to its service, an early sign that there’s some developer unrest.
This is going to be interesting but as it is the open source world, there are alternatives so you have to win trust and confidence. Unfortunately for Microsoft, that trust has been broken many times over the last few decades and many developers have long memories...
|Microsoft confirms it will acquire GitHub for $7.5 billion