Microsoft Said To Have Agreed To Buy GitHub

Microsoft EVP Scott Guthrie and Jason Warner senior vice president of technology at GitHub at Microsoft Build 2018

Microsoft EVP Scott Guthrie and Jason Warner senior vice president of technology at GitHub at Microsoft Build 2018

The 10-year-old GitHub, which is based in San Fransisco, is a platform for 27 million developers and hosts 80 million repositories of code.

This is big news as GitHub hosts the world's largest collection of code, with many developers using it as a repository for projects.

We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform. The platform hosts a growing network of developers in almost every country representing more than 1.5 million companies across healthcare, manufacturing, technology, financial services, retail and more.

But even as Ballmer celebrated the developers building proprietary software for Microsoft, in the early 2000s he and his executive team were highly critical of the kind of open-source program built in GitHub today.

Microsoft will pay $7.5 million in company stock for Github, which was valued at approximately $2 billion back in 2015.

Both Microsoft and GitHub haven't responded to requests for comment. Developers still will be able to deploy their code to any operating system, any cloud computing service and any device.

Microsoft's origin story lies in the market for software-development tools, with co-founders Bill Gates and Paul Allen focused on giving hobbyists a way to program a new micro-computer kit.

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If Microsoft does acquire GitHub it'll likely mean closer integration between Microsoft's developer tools and the service.

GitHub preferred selling the company to going public and chose Microsoft partially because it was impressed by Nadella, a person familiar with the deal said on Sunday.

The world's leading repository of open-source code is set to become part of a software giant that built its fortune on proprietary software. In case you're wondering what will happen to current CEO Chris Wanstrath, he'll continue his work as a Microsoft technical fellow.

Microsoft made a slew of significant purchases in recent years, including Minecraft and LinkedIn to name two of the most prominent ones, and Satya Nadella isn't done.

GitHub has an on-premises "GitHub Enterprise" offering, which is an on-premises code-development/repository platform that companies can use inside their firewalls. Open source stands for making software code available to everyone. And as CNBC points out, data from GitHub could also help Microsoft better its artificial intelligence capabilities.

GitHub will still operate independently from Microsoft, with Nat Friedman, now Microsoft Corporate's vice president, assuming the role of GitHub CEO.

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