Microsoft agrees to buy coding site GitHub for $7.5 billion

Is Microsoft acquiring GitHub?

Microsoft may be considering GitHub acquisition

Microsoft on Monday said it will buy software development platform GitHub, in a deal worth $7.5 billion which will blend two opposite corporate cultures. "However, the real power comes when every developer can create together, collaborate, share code and build on each other's work". Microsoft has open-sourced some of its Visual Studio developer tools' code through GitHub, and has done the same for some of its cloud services. GitHub is the code-repository company popular with many software developers.

"Most importantly, we recognize the responsibility we take on with this agreement", Nadella wrote.

We both believe GitHub needs to remain an open platform for all developers.

Microsoft's vice president of developer services, Nat Friedman, will become the new head of GitHub. Chris Wanstrath, co-founder of Github, will become a Microsoft technical fellow.

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"As developers, we knew this was a false dichotomy - we had been using open source software successfully in a business setting for a long time".

Microsoft said it expects the deal to close by year-end.

GitHub offers free individual accounts, but also has a pricing plan for businesses that want to maintain something of a private network for their developers.

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.

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The more developers on GitHub, he said, the more that collaboration around new technologies can take place.

Wanstrath said in a blog post Monday that he could never have imagined this deal a decade ago, when "Git was a powerful but niche tool, clouds were just things in the sky, and Microsoft was a very different company".

He said the investment stemmed from the firm's theory that developers would drive the new economy, and "GitHub was at the epicenter of that transformation". Chris and the early team designed Github for their own use, but quickly saw the enormous opportunity in connecting developers everywhere, and that simple concept has changed software development forever.

Again, there will be growing pains with this new announcement from Microsoft, but GitHub developers should view the landscape from 30,000 feet before they made a decision to do anything today, tomorrow or in the near future.

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The deal should help build Microsoft's presence in the enterprise open source software market. As of this month, there are 85 million repositories on GitHub, with more than 28 million developers contributing to them, according to GitHub's own stats. Microsoft did not disclose any relevant financials for GitHub today, but a report by Raymond James's Michael Turits, a bull on Apple stock, notes that press reports from last summer mentioned a $200 million annual "run rate" for revenue at the startup.

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