Microsoft on Monday announced that it plans to acquire software developer platform GitHub in a deal valued at $7.5 billion.
This is the second big acquisition recently as Adobe announced their acquisition of Magento last week.
GitHub has been previously valued at $2 billion in its last funding round back in 2015, though it has yet to turn a profit.
Microsoft vice president Nat Friedman will assume the role of GitHub CEO, the company said, taking over for the developer platform’s founder Chris Wanstrath, who stepped down 10 months ago.
Microsoft Going Back To Development
“Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation…We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world’s most pressing challenges.” Satya Nadella, Microsoft, CEO.
Microsoft said it was paying $7.5bn (£5.6bn) in stock to achieve the deal, which is due to close before the end of the year. It said Github would continue to operate independently.
It added that Github is currently used by more than 28 million developers, who in turn represent more than 1.5 million organisations across a range of industries including many of the largest companies around the world.
Microsoft has reportedly flirted with buying GitHub in the past, including in 2016, although GitHub denied those reports.
A partnership could give Microsoft another connection point to the developers it needs to build applications on its various platforms, including the Azure cloud. Microsoft could also use data from GitHub to improve its artificial intelligence products.
Microsoft doesn’t expect to make money off the deal until 2020, but said it will have minimal negative impact on earnings.
What do you think about this acquisition? Is it good or bad news for GitHub users? Let us know in the comment section below or over in our Facebook Group here.