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

04 June, 2018, 20:36 | Author: Sheri Evans
  • Microsoft is buying code-sharing site GitHub, say reports

The Windows maker is one of the largest contributors to GitHub. Microsoft is no stranger to ingesting huge companies. The price of the acquisition was $7.5 billion in Microsoft stock.

Microsoft CEO Nadella has been moving the company away from hesitations with open-source software development and investing more heavily in resources like GitHub. The site allows developers to upload open-source software so other developers can tweak and improve upon the code. Some, noting changes happening at the company since Satya Nadella became CEO in 2014, said they believed Microsoft would be a good steward for GitHub.

Bloomberg said GitHub has been searching for a new chief executive officer for the past nine months and is now unprofitable.

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According to the new report, Microsoft may have to shell out in the region of US$5 billion to add GitHub to its growing list of mergers and acquisitions. In 2007, Microsoft alleged that Linux violated 235 of its patents, and it went on to press charges against mapping company TomTom for IP infringement via its use of Linux (the two companies eventually settled). GitHub has also not responded to media inquiries to the potential acquisition.

"In other words, not only should sceptics not be anxious about Microsoft unduly favouring their own platforms, they should also be excited that, more than any other potential acquirer, Microsoft is likely to push the individual and community aspects that make GitHub so unique". GitHub allegedly hosts over 80 million code repositories and 27 million developer accounts. It's worth noting that Microsoft does use GitHub, just like Google and other tech companies. Bloomberg reported that despite growing revenue, the company posted a loss of $66 million (paywall) over the first nine months of 2016. Last August, the company said it wanted a replacement for CEO Chris Wanstrath - one of GitHub's founders.

The best thing Microsoft can do is not to do anything to GitHub for the foreseeable future.

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Despite Microsoft's recent decision to open its arms to open source, there are plenty of sceptics, especially within the GitHub community.

Many firms depend on GitHub to collaborate and build their products.

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