Microsoft reportedly buys code-sharing site GitHub

MIcrosoft buy GitHub

Microsoft shares were up almost 1 percent at a record high of $101.78.

Also, Nadella stated that "Microsoft is all-in on open source".

The acquisition reflects Microsoft's "ongoing pivot to open-source software, seeking to further broaden its large and growing development community", said Richard Lane, an analyst at Moody's Investors Service. However, this potential partnership has since evolved into a possible acquisition, though the source claimed that GitHub's asking price "was more than Microsoft now wanted to pay". TNW reports many developers jumped ship ahead of the official confirmation. And several teams at Microsoft already use GitHub's software tools. We wanted to do it using Git, we wanted anyone in the world to be able to join in, and we didn't want it to cost a dime if it was open source. This deal will mark another dramatic step in that direction.

Because of this functionality, GitHub has found itself at the center of the world of open-source software development - making this deal somewhat ironic, as Microsoft spent much of the '90s fierecely competing with open-source initiatives. 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.

GitHub reportedly preferred selling to going public, and chose Microsoft after meeting Nadella and being impressed by him.

Github, based in San Francisco, is an online platform that allows coders to collaborate with each other on their work. But Julie Lerman, a GitHub user who works as a Microsoft liaison with freelance developers, cautiously welcomed the partnership. Still, GitHub's losses have been significant - it lost $66m over three quarters in 2016 - and it has been hunting for a new CEO for nine months. The company's current CEO, Chris Wanstrath, will become a Microsoft technical fellow. Despite the centrality of GitHub for the developer community, the company has lately run into some financial and leadership issues. It now has more than 28 million users and hosts over 85 million code archives known as repositories. According to Business Insider, the two technology companies came together to discuss a joint market venture and a potential acquisition too. As for the amount of the sale, it seems that they have not yet reached an agreement, but the last assessment received by GitHub was 2000 million dollars in 2015.

This latest acquisition is one of the largest in Microsoft history, coming just a few years after their $26.2 billion all-cash acquisition of LinkedIn.