Microsoft is said to have agreed to acquire coding site GitHub

  • Microsoft is said to have agreed to acquire coding site GitHub

Microsoft is said to have agreed to acquire coding site GitHub

Plus, if someone else takes the reigns at Microsoft, there's no guarantee that they won't simply undo everything down the line, and what then for GitHub? Last August, the company said it wanted a replacement for CEO Chris Wanstrath - one of GitHub's founders.

Word on the street is that Microsoft has been talking to GitHub, the famous code repository company that so many developers use on a regular basis, about a potential purchase.

But despite its popularity with enterprise users, individual developers and open source projects, GitHub has never turned a profit and chances are that the company decided that an acquisition was preferable over trying to IPO. Lowering the pricing on private accounts would also be a positive.

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

Over on The Register, results of a poll suggest that people are less than keen on the idea of Microsoft snapping up GitHub. GitHub has become an essential way to connect with developers as the company's business model has evolved and allowed it to open itself to open-source code.

After a couple of days of rumors and speculations, Microsoft has officially announced that it's acquiring GitHub for $7.5 billion. That's because there is a lot of distrust of Microsoft in this cohort, which is understandable given Microsoft's history.

After the deal closes, GitHub's financials will be reports as part of Microsoft's Intelligent Cloud segment.

Conversely, of course, pre-Nadella, Microsoft wasn't working, and its embracing of open source has probably saved it from complete irrelevance.

Yet at the same time, it's worth remembering that Microsoft is now a member of the Linux Foundation and regularly backs a number of open source projects.

"Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation", said Microsoft Chief Executive Officer Satya Nadella said in a statement.

Microsoft has paid out more for other services in the past: LinkedIn cost the tech giant around US$26 billion and US$8.5 billion was the price for the acquisition of Skype.

As for GitHub, a sale to a larger, profitable company isn't something seen as out of the blue.