Microsoft has agreed to acquire GitHub, a popular code repository that's used by many developers, according to Bloomberg. GitHub is the largest host of source code in the world, having over 57 million project repositories and over 20 million users relying on it to keep that code safe and accessible. That may not completely win over open source developers who don't like the idea of a company like Microsoft owning GitHub, but as Nadella says, "When it comes to our commitment to open source, judge us by the actions we have taken in the recent past, our actions today, and in the future".
The acquisition is expected to close by the end of the year, subject to regulatory approval.
We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform.
GitHub is an essential tool for coders. 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.
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"I'm extremely proud of what GitHub and our community have accomplished over the past decade, and I can't wait to see what lies ahead". In fact, just past year, Microsoft shut down CodePlex, which is like GitHub although it launched back in 2006. Gaining access to millions of developers and projects is a positive, but only if they continue using the service. And the choices these developers make will increasingly determine value creation and growth across every industry.
It looks like GitHub will be added to the list, giving Microsoft an edge in open-source development.
There's also some irony in Microsoft buying a company whose namesake, git, was created by Linus Torvalds. That said, the price seems right for what GitHub is, so it wouldn't surprise me if that was what Microsoft paid.
"The enterprise offering will fold nicely into Microsoft's other businesses", the analyst Ben Thompson of Stratechery wrote "but ... the real win for Microsoft is not incremental peanuts in enterprise revenue but winning hearts and minds with developers broadly". Morgan Stanley is acting as exclusive financial advisor to GitHub, while Fenwick & West LLP is acting as its legal advisor.