Microsoft in talks to buy GitHub, valued at $2 billion

Microsoft in talks to buy GitHub, valued at $2 billion

Microsoft in talks to buy GitHub, valued at $2 billion

Many developers use GitHub to handle version control for their projects, to collaborate with other people, and in some cases to distribute their software directly to their users.

GitHub supplies coding tools for developers and calls itself the world's largest code host with more than 28 million developers using its platform. It said Github would continue to operate independently.

According to Bloomberg, GitHub preferred selling the company to going public and chose Microsoft partially because it was impressed by Nadella.

More than 28 million developers already collaborate on GitHub, and it is home to more than 85 million code repositories used by people in almost every country. 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.

All should be done by "the end of the calendar year", and Microsoft is delighted to further build on its "developer-focused" foundation to "empower every developer to build, innovate and solve the world's most pressing challenges". GitHub, though, will see a leadership change, and Microsoft Corporate Vice President Nat Friedman will assume the role of GitHub CEO. One thing that will definitely happen if this acquisition goes through is GitHub's infrastructure moving to Microsoft's Azure cloud computing service.

News of Microsoft's intent to buy GitHub leaked on Friday in a report by Business Insider.

GitHub's co-founder and current CEO, Chris Wanstrath, will join Microsoft as a technical fellow to work on software initiatives.

The companies have reportedly had several discussions about partnership in recent years, but those close to GitHub's decision told media outlets that talks have grown increasingly more serious.

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.

GitHub has become so valuable because it's at the very centre of nearly every development project out there right now. Microsoft could also use data from GitHub to improve its artificial intelligence producs.

Microsoft shares rose almost 1 percent to hit a record high of $101.79.

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