Microsoft to Acquire GitHub

Microsoft to Acquire GitHub

Microsoft shares rose almost 1 percent to hit a record high of $101.79.

"[.] the real power comes when every developer can create together, collaborate, share code and build on each other's work". Knowing GitHub's position with developers, Microsoft has also leaned on the service quite a bit itself, too and some in the company already claim it is the biggest contributor to GitHub today. You see Linux and other software that is built with open-sourced technology are mostly free, which directly threatens Microsoft's control over what software is put on the world's PCs.

GitHub will still operate independently from Microsoft, with Nat Friedman, now Microsoft Corporate's vice president, assuming the role of GitHub CEO. Potential synergies also exist between GitHub and Microsoft's hybrid cloud platform Azure, as well as LinkedIn.

GitHub's tools have become essential to software developers, who use it to store code, keep track of updates and discuss issues. Meanwhile, Microsoft spent much of the '90s and '00s treating open source as a dire and immediate threat to its business.

Microsoft CEO Satya Nadella's enthusiasm and support for open-source software has been instrumental in the acquisition, indicates the Bloomberg report. This deal will mark another dramatic step in that direction.

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Bloomberg said the decision to go to Microsoft was partly because of the company being impressed by Chief Executive Officer Satya Nadella. Since its inception it has become a mainstay of the open source world, with countless projects-including Microsoft projects such as the Visual Studio Code text editor and the .NET runtime-using GitHub repositories as a place to publish their code to the world and coordinate collaborative development. And late past year, GitHub revealed that it would be adopting Microsoft's GVFS tool for managing large-scale source code repositories. Within three quarters of 2016, GitHub lost over $66 million. Last August, the company said it wanted a replacement for CEO Chris Wanstrath - one of GitHub's founders. Now, he said, "Microsoft is the most active organization on GitHub in the world".

Github, on the other hand, claims to now support a community of more than 27 million people who share and work together to build software.

Whilst the news has come as something of a shock to most, negotiations are said to have been in progress for some time, first for a partnership and then more recently a full acquisition. The deal is expected to close this year. "I want to share what this acquisition will mean for our industry and for developers". "Each acquisition has been defined by an asset that was unique in its own way and could be leveraged in multiple parts of Microsoft".

After reports of a likely deal between Microsoft and GitHub emerged on Sunday, some users of the software development platform raised doubts on social network Reddit here that GitHub would "eventually favor Microsoft products over competing alternatives".

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