Microsoft reportedly agrees to acquire GitHub

Share

Microsoft might pay upwards of $5 billion for the company.

Business Insider first reported talks between the companies on Friday.

The company says that it is today "all-in on open source" and promises to maintain open access. Under Nadella, who replaced Ballmer in 2014, the company has formed partnerships with Linux, and launched a number of open-sourced products and services with other companies. Windows itself, however, remains closed source and it is highly unlikely that this will change. Those building public and open source projects can use it for free. These numbers are only expected to grow as Monday comes around and most developers get back to work.

But despite these moves, many in the community are up in arms over the prospect of their former enemy taking control of what is one the most important open-source properties on the web.

GitHub provides an open source database, meaning that it can be used by anyone, featuring codeused by developers and companies, including Microsoft. One thing that will definitely happen if this acquisition goes through is GitHub's infrastructure moving to Microsoft's Azure cloud computing service.

Since Satya Nadella took over as CEO at Microsoft, the OS maker has been refocusing its efforts on strengthening its cloud-based services and having a larger presence on the open-source market.

More news: Wonder Woman 2 receives a cryptic and exciting update
More news: Bethesda Might Be Teasing A New Fallout Game
More news: Codility Data Privacy Standards Exceed General Data Protection Regulation (GDPR) Compliance Levels

That's what makes Microsoft's rumored announcement so exciting.

The BBC is among those to use it to share some of its open source code. It's also a social network of sorts for developers. Other coders are then able to tinker with and improve the code.

Microsoft is buying GitHub for $7.5 billion, the company announced on June 4.

GitHub may soon fall under the wide umbrella of Microsoft.

While some developers seem unhappy about an acquisition, it's possible that Microsoft's interest is GitHub's saving grace.

Github, which was valued at $2 billion back in 2015, generates $200 million in subscription revenue including $110 million from enterprise customers, but is not now profitable, having lost $66 million over three quarters in 2016. The stepping down of CEO Chris Wanstrath past year created slight feelings of unease, and a replacement is yet to be found for him.

Share