After acquiring LinkedIn for $26.2 billion back in 2015, Microsoft has made its next mega acquisition under the leadership of Satya Nadella. This new acquisition is valued at a whopping $7.5 billion, and the company in question is very popular among developers worldwide. Yes, we are talking about GitHub!
Microsoft is reported to close the GitHub deal by the end of the year post which former Xamarin CEO Nat Friedman will take charge as the new GitHub CEO. Friedman would report to Microsoft’s Cloud and AI chief Scott Guthrie. Moreover, GitHub co-founder and current CEO Chris Wanstratch will move on to be a technical fellow at Microsoft, and would also report to Guthrie.
GitHub currently claims to have nearly 28 million developers in its community, and over 85 million code repositories. It is, in fact, the largest host of source code globally. Despite that GitHub had failed to churn out much profit with its main revenue source as of today being its paid account. Those accounts allow for private repositories and offer a number of enterprise feature for prices starting at as low as $7 per month. Industry analysts believe that in an attempt to gather some cash to fund the platform, GitHub opted for the more profitable acquisition route than IPO.
Microsoft themselves have been frequent users of the GitHub protocol. Its Visual Studio Team Services product is based on GitHub’s enterprise service. The Redmond based giant even go to the extent of calling itself as the biggest contributor to GitHub’s platform.
With the acquisition in place, Microsoft would need to undergo a lot of struggle to win the love and confidence of developers globally. Coders around the world aren’t always happy with Microsoft, and that’s been one of the reasons behind the dismal failure of some the company’s million dollar projects like Windows Phone and Universal Windows App. Only time will tell how the love-hate relationship would pan out to be between Microsoft and GitHub current developer community.