Microsoft Acquires GitHub for $7.5 billion


Microsoft, on Monday 4th June, 2018 announced that it had reached an agreement to acquire the world leading software development company, GitHub. The deal would be worth a whooping $7.5 billion and will beef up Microsoft’s cloud computing business (Azure), plus positioning it for competition with Amazon.

Microsot CEO, Satya Nadella, in the announcement, affirmed that “Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation.”

The GitHub deal, which is Microsoft biggest after the 2016 LinkedIn deal, is expected to close by the end of the year. Nadella, who acknowledged that being responsible for GitHub would be huge, said, Microsoft would do its best to empower the over 28 million developers on GitHub to do what they do best – “build, innovate and solve the world’s most pressing challenges.”

On whether GitHub would retain its open source status, Microsoft allays such fears in the announcement. It said GitHub will be retaining its developer-first ethos, while operating independently to provide an open platform for all developers in its platform. Furthermore, developers will continue to be able to use the programming languages, tools and operating systems of their choice for their projects on the platform, as well as being able to deploy their code to any operating system, any cloud and any device.

On completion of the $7.5 billion GitHub deal by the end of the year, Microsoft Corporate Vice President Nat Friedman, founder of Xamarin and an open source veteran, will assume the role of GitHub CEO. Chris Wanstrath, GitHub’s current CEO, will become a Microsoft technical fellow.

Microsoft was founded by Paul Allen and Bill Gates on April 4, 1975. The American multinational technology company develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services.

GitHub is a San Francisco, USA web-based development company founded in 2008 by Tom Preston-Werner, Christ Wanstrath and PJ Hyett. The company is a community for both private repositories and free accounts for open source software development. It runs a platform for network of developers in nearly every country representing more than 1.5 million companies across healthcare, manufacturing, technology, financial services, retail and more.

As at 2017, GitHub had about 20 million users and 57 million repositories, making it the largest host of source code worldwide.

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