Microsoft agrees to buy coding site GitHub for $7.5 billion

Microsoft agrees to buy coding site GitHub for $7.5 billion

Microsoft agrees to buy coding site GitHub for $7.5 billion

Open-source software allows developers to tinker with, improve upon and share code - an approach that threatened Microsoft's business model. Microsoft is the top contributor to the site, and has more than 1,000 employees actively pushing code to repositories on GitHub.

"GitHub will retain its developer-first ethos and will operate independently to provide an open platform for all developers in all industries".

Microsoft CEO Satya Nadella called the move a way for Microsoft to "strengthen our commitment to developer freedom, openness and innovation". One person familiar with the situation explained that this evolved into a discussion around an acquisition, giving Microsoft nearly direct access to the knowledge of 27 million software developers and 80 million repositories of code.

The tech giant, based in Washington state, is a heavyweight in terms of software whose source codes are not openly available or modifiable, exactly the counter of GitHub's philosophy.

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Bloomberg is reporting that Microsoft has acquired GitHub, and will announce the deal on Monday.

"Most importantly, we recognize the responsibility we take on with this agreement", said Microsoft CEO Satya Nadella, according to The Verge. 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.

Meanwhile, Github has been struggling for 9 months to find a replacement for Chris Wanstrath, who announced he was stepping down as CEO a year ago. The company expects GitHub to start contributing revenues to its Intelligent Cloud segment on a non-GAAP basis by 2020, roughly one year after the deal closes.

Microsoft's Nat Friedman will take over as the Chief Executive of San Francisco-headquartered GitHub, whose current CEO Chris Wanstrath will become a Microsoft technical fellow. But Julie Lerman, a GitHub user who works as a Microsoft liaison with freelance developers, cautiously welcomed the partnership. And for a staggering sum of $7.5 billion. Founded in 2008, GitHub hosts 27 million software developers working on 80 million repositories of code. In fact in 2016, Microsoft was reportedly toying the idea of buying GitHub, although the latter has denied those reports. "The future of software development is bright, and I'm thrilled to be joining forces with Microsoft to help make it a reality", Wanstrath said. The Microsoft store on Fifth Avenue in Midtown Manhattan is shown June 4, 2018 in New York City.

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