Microsoft to Acquire GitHub

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More than 28 million developers around the world use GitHub, with Microsoft ranking as the most active organization on it. Microsoft said it will also bolster the use of GitHub by businesses, relying on its sales team, existing corporate partnerships and cloud computing infrastructure. Subject to customary closing conditions and completion of regulatory review, the acquisition is expected to close by the end of the calendar year.

The two have confirmed that Github will operate independently of Microsoft, as an open platform using all programming languages, tools and operating systems for any project. Last valued at $2bn in 2015, the company lost $66m in the first nine months of 2016, according to Bloomberg, which first reported news of the deal last night.

But Chief Executive Officer Satya Nadella downplayed those concerns by saying on a conference call that GitHub will continue to be an open platform that works with all public clouds.

Once the acquisition is complete, Nat Friedman, an open source veteran and founder of Xamarin, will become CEO of GitHub.

In early May, Microsoft revealed a new partnership with GitHub that was meant to bring the power of Azure DevOps services to GitHub users. Founded in 2008, GitHub hosts 27 million software developers working on 80 million repositories of code. Primary among them is the likelihood that competitors to Microsoft would move their code repositories off GitHub, diminishing its value as a community.

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It sounds very much like Microsoft is trying to make a new push for developers to use its tools and services, including its cloud systems, with this purchase of GitHub.

As Bloomberg reports, Microsoft is believed to have acquired GitHub.

Moody's analyst Richard Lane said the deal reflects Microsoft's "ongoing pivot to open source software, seeking to further broaden its large and growing development community". But Visual Studio, Visual Studio Code, and other Microsoft developer offerings will no be tailored to work natively with the service. Chris Wanstrath, the GitHub cofounder who is now serving as CEO, will take the new title of Microsoft technical fellow and remain an adviser to the company.

Shares of Microsoft are up 19% since the beginning of 2018.