Microsoft confirms GitHub acquisition
The popular web-hosting service GitHub has now acquired tech monster Microsoft. Earlier, a leading financial news provider reveals the news about this deal and announce the cost of the deal on Monday. Finally, Microsoft confirms GitHub acquisition with a deal of $7.5 billion. According to 2015 reports, the company valuation in market about $2 billion.
The service GitHub commonly used to host open-source projects, means anyone can store and share the code. Leading Tech companies like, Microsoft, Facebook, IBM, Amazon, Google, Apple, SAP, and other companies use the service.
Microsoft Redmond campus is the major supporter to GitHub. Currently, GitHub has 28 million developers and 85 million code repositories. But, the company has never gotten proper profits. The company main revenue source is paid accounts, which allows for private repositories with pricing ranging from $7 per user per month to $21/user/month. Those building public and open source projects can use it for free.
How this deal is beneficial for both Microsoft and GitHub?
Currently, Microsoft has more than 1,000 employees actively pushing code to GitHub repositories. Its popularity among developers could see Microsoft get genuine trust and respect from developers. With this deal, Microsoft will make it more trusted to use for projects and source control.
Microsoft CEO, Satya Nadella, said, 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.
With this acquisition, Nat Friedman, CEO of Xamarin, Microsoft owned company, now become GitHub’s CEO. The founder of GitHub Chris Wanstrath has now become a Microsoft technical fellow and work on strategic software initiatives.