Published: Tue, June 05, 2018
Technology | By Nina Perez

Microsoft buys coding platform GitHub for $7.5 billion

Microsoft buys coding platform GitHub for $7.5 billion

Microsoft has agreed to acquire GitHub Inc and a deal could be announced as soon as June 4, according to a report from Bloomberg.

GitHub was founded a decade ago as a platform for developers to share code.

Facebook, Apple, and Google all use Github, but few other companies contribute as much as Microsoft, which has more than 1,000 employees actively pushing repositories to the service. In its official announcement, Microsoft stated that once its purchase is completed, GitHub will still "operate independently" and developers will also be allowed to keep using the same code, tools and operating systems for all of their projects that are uploaded to the service.

"Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation", said Microsoft Chief Executive Officer Satya Nadella said in a statement. The platform hosts a growing network of developers in almost every country representing more than 1.5 million companies across healthcare, manufacturing, technology, financial services, retail and more. Microsoft, once opposed to that kind of open-source software development, is now one if the biggest contributors to GitHub.

GitHub raised $250 million in 2015 and was last valued at $2 billion.

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

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The open-source model was once anathema to Microsoft, the leading commercial software company. GitHub CEO and Co-Founder Chris Wanstrath will become a technical fellow at Microsoft, also reporting to Guthrie.

Business Insider spoke with Friedman and Wanstrath following news of the acquisition, and the two laid out the master plan for what will happen after the closing of the GitHub deal, expected later this year.

As part of the acquisition, GitHub will continue to focus on developers.

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.

Moody's analyst Richard Lane said the deal reflects Microsoft's "ongoing pivot to open source software, seeking to further broaden its large and growing development community".

Shares of Microsoft are up 19% since the beginning of 2018.

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