Microsoft acquires software development platform GitHub for $7.5B, exodus begins

A Microsoft cloud... sorta

Microsoft has agreed to acquire GitHub Inc and a deal could be announced as soon as June 4, according to a report from Bloomberg.

Launched in April 2008, GitHub has since become a huge site for software developers to upload and share their code and projects, especially when it comes to uploading open-source projects.

Favoured by independent and tech giant software developers alike, the two companies will accelerate enterprise use of Github and hope to bring Microsoft's own developer tools and services to new audiences.

Why this matters: Microsoft says it's been the most active organization on GitHub, and that it wants it to operate independently.

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More than 28 million software developers use GitHub, and the San Francisco company said its website holds 85 million code repositories. Microsoft, once opposed to that kind of open-source software development, is now one if the biggest contributors to GitHub.

It's unclear what the price tag of such a deal may be, though GitHub was most recently valued at $2 billion when it raised its last round of funding in 2015.

"We recognize the responsibility we take on with this agreement", Nadella wrote.

GitHub's current CEO, Chris Wanstrath, said he "can't wait to see what lies ahead" with Microsoft.

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In April, Microsoft reported that its earnings rose 35 percent to $7.4 billion in the fiscal third quarter, with revenue up 16 percent to $26.8 billion. Buying the company will help Microsoft become a central part of many software developers' lives without requiring it to introduce new products or features of its own.

Once the acquisition closes later this year, GitHub will be led by CEO Nat Friedman, Microsoft said in its statement. But Microsoft has come to embrace open-source tools.

According to GitHub, as of March 2018 it has more than 27 million developers with 80 million repositories hosted. Chris Wanstrath, the GitHub cofounder who is now serving as CEO, will take the new title of Microsoft technical fellow and remain an adviser to the company.

"So as we look to the next decade of software development and beyond, we know it's all about the developer". Others were more positive, and Sam Newman, author of "Building Microservices", suggested that many people may not be "familiar with the Microsoft of today", and stated that "there are few other similar large companies [he sees] who so consistently focus their efforts on making developers lives easier".

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