Microsoft's Open Source Coup: It's Buying GitHub for $7.5 Billion

Microsoft's Open Source Coup: It's Buying GitHub for $7.5 Billion

Microsoft's Open Source Coup: It's Buying GitHub for $7.5 Billion

The developer platform GitHub, which is widely used for storing, sharing, and collaborating on code, will apparently soon be a Microsoft company.

The deal is a big bet on Azure, the company's fast-growing cloud business, as it will be able to lure more code developers who use GitHub and drive more business to Microsoft. Subject to customary closing conditions and regulatory approval, the acquisition is expected to close by the end of 2018.

Microsoft said in a news release Monday that GitHub will continue to remain an open platform that is independently operated.

Bloomberg said the decision to go to Microsoft was partly because of the company being impressed by Chief Executive Officer Satya Nadella.

Github, on the other hand, claims to now support a community of more than 27 million people who share and work together to build software.

The web-based repository of open-source software projects first launched in 2008 and has over 28 million users.


GitHub was last valued at $2 billion after it had received $250 million in its last funding round in 2015. Secondly, Microsoft will accelerate enterprise developers' use of GitHub through direct sales and and partner channels and will also give access to Microsoft's global cloud infrastructure and services.

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, U.S., on June 14, 2016. Buying the company will help Microsoft become a central part of many software developers' lives without requiring it to introduce new products or features of its own.

Git is far and away the most popular version control system, clouds are mostly computers, and Microsoft is the most active organization on GitHub in the world.

Microsoft said it expects the deal to close by year-end. Microsoft corporate vice president and founder of Xamarin, Nat Friedman, will become the new GitHub CEO. GitHub is the world's leading software development platform.

"So as we look to the next decade of software development and beyond, we know it's all about the developer".

GitHub has become so valuable because it's at the very centre of nearly every development project out there right now. According to GitHub data, Microsoft is one of the top contributors to the site and has more than 1000 employees adding code to repositories.

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