Microsoft paying $7.5 billion for GitHub
- Jeannie Matthews
Favoured by independent and tech giant software developers alike, the two companies will accelerate enterprise use of Github and hope to bring Microsoft's own developer tools and services to new audiences.
It now counts about 27 million software developers around the world who use its platform to share code and build businesses. In recent years, under CEO Satya Nadella, the company has begun to embrace open-source technology, however.
Current GitHub CEO Chris Wanstrath will become a Microsoft technical fellow and report to Scott Guthrie, to work on strategic software initiatives. While some are happy to see GitHub getting the backing of Microsoft, others are rather concerned, and there have been reports of a sudden shift of projects to GitHub alternative GitLab. He also said that Microsoft presented "the right home and the right future for GitHub".
GitHub reportedly preferred selling to going public, and chose Microsoft after meeting Nadella and being impressed by him. Now, he said, "Microsoft is the most active organization on GitHub in the world".
By pulling off its largest acquisition since the $26 billion acquisition of LinkedIn in 2016, Microsoft gets a platform universally known by developers. Friedman, for his part, said on that call that he's excited to get started with GitHub when the deal closes later this year.
According to Microsoft, GitHub will adhere to its "developer-first" ethos and will continue to be operated "independently" as a platform-agnostic service. GitHub has become an essential way to connect with developers as the company's business model has evolved and allowed it to open itself to open-source code.
The San Francisco-based startup hosts open source projects for companies that include Google, Facebook, Twitter, and even Microsoft. The short version: GitHub will maintain its independence as a wholly-owned subsidiary, but have access to Microsoft's prowess in both engineering and sales. From "Code to Cloud and Code to Edge", GitHub's mission is to help every developer-regardless of experience level-learn, code, and ship software effectively.
At Build last month, Microsoft once again partnered with GitHub, as it opened up Azure DevOps services to GitHub customers.