Microsoft Acquires Software Developer Platform GitHub for $7.5 Billion

Microsoft and GitHub
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The tech giant has already reportedly acquired GitHub for a whooping $7.5 Billion in an all stock deal.Microsoft and GitHub

The rumours about Microsoft acquiring GitHub has been on and off for the last two years. However, if recent reports are to be believed, it seems that the two companies have finally reached an agreement.

Bloomberg is citing “people familiar with the matter” who claim that the software giant may announce the acquisition as early as today.

The company is currently valued at $2 billion after it received $250 million in funding back in 2015.If indeed that deal with Microsoft has been finalized, the latter would be paying at least $5 billion. This is a big step-up from the rumoured planned joint marketing partnership between the two worth $35 million.

For those who are not familiar, GitHub is a web-based hosting service for version control using Git and is mostly used for computer code. It allows developers to use GitHub’s tools to store, change or adopt codes for free. The company has more than 23 million users and boasts client organisations such as Apple, Amazon, Google and Microsoft.

Since Satya Nadella took over the CEO role, Microsoft has really been pushing for open source technology. It has made several of its products open sourced including PowerShell, Visual Studio Code, and the Microsoft Edge JavaScript engine.

With the acquisition in place, the company would have access to about 27 million software developers. It would also likely result to an even closer integration between Microsoft’s developer tools and the service.

Both companies have yet to comment on the acquisition rumours but I guess we won’t have to wait long to find out?

Update: Microsoft has already confirmed the acquisition of GitHub for $7.5 billion. This is the company’s second biggest acquisition next to the LinkedIn buyout at $26.2 billion.

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