Rumor: Microsoft May Be Acquiring GitHub

04 June, 2018, 20:35 | Author: Martin Tyler

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. The deal could be announced as soon as today, according to Bloomberg.

"The enterprise offering will fold nicely into Microsoft's other businesses", the analyst Ben Thompson of Stratechery wrote "but ... the real win for Microsoft is not incremental peanuts in enterprise revenue but winning hearts and minds with developers broadly".

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Microsoft (msft) is expected to announce later today that it has acquired GitHub, a code repository. The company is based on the principle of open-source licensing, where developers are allowed to access, use, and tweak code written by others with the goal of improving it. 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.

Rumors of Microsoft looking to buy GitHub started popping up online on Friday.

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"GitHub doesn't compete with most companies, but Microsoft is a potential competitor or acquirer for a huge percentage of smaller companies in the tech industry", says Salibra.

The code repository has been used by some of software development's biggest names including Apple, Google, and Amazon. GitHub is home for modern developers and the world's most popular destination for open source projects and software innovation.

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News of the intensification of talks comes courtesy of Business Insider, which cites people close to both companies. One thing that will definitely happen if this acquisition goes through is GitHub's infrastructure moving to Microsoft's Azure cloud computing service. "Developers will continue to be able to use the programming languages, tools and operating systems of their choice for their projects", it added. The Git-repository hosting service, which has its headquarters in San Francisco, was last valued in 2015, with an estimate of US$2 billion being placed on the company. However, there are Microsoft products and services - for example, Visual Studio Team System (VSTS) - that Microsoft will need to decide how to integrate with GitHub. The stepping down of CEO Chris Wanstrath a year ago created slight feelings of unease, and a replacement is yet to be found for him.

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