Microsoft set to snap up GitHub in multi-billion dollar deal

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On Sunday, citing internal sources, Bloomberg reported that the deal was already done, and set to be announced on Monday. The company has since grown to feature video game consoles (Xbox), consumer electronics, personal computers and cloud services (Microsoft Azure).

"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".

Microsoft is reportedly buying the code-sharing site GitHub, a developer-focused startup that has become a crucial part of the programming industry since it was founded in 2008.


GitHub has billions of lines of code available for open source distribution and forking, and these will now come under the auspices of a company that has until very recently been actively hostile to open source.

For one thing, Microsoft has a track record of purchasing companies and letting them atrophy. While Microsoft share prices rose at the news, GitHub users are less convinced that the move would be a good idea.

Sources familiar with the talks said that GitHub preferred selling the company to going public, and chose Microsoft because it was impressed by Nadella. Many engineers use the site to store their code, keep tabs on updates, and even use it as a discussion forum. It's worth noting that Microsoft does use GitHub, just like Google and other tech companies. It's also a social network of sorts for developers. "The future of software development is bright, and I'm thrilled to be joining forces with Microsoft to help make it a reality", Wanstrath said. If Microsoft does acquire GitHub, it could be seen as a visible attempt to further integrate Linux and Windows and increase interoperability, as demonstrated by the Windows Subsystem for Linux (WSL) compatibility layer found in Windows 10. GitHub is home for modern developers and the world's most popular destination for open source projects and software innovation.


After a couple of days of rumors and speculations, Microsoft has officially announced that it's acquiring GitHub for $7.5 billion.

Many firms depend on GitHub to collaborate and build their products.


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