Microsoft to Acquire GitHub

Microsoft reportedly in talks to acquire GitHub

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

The developer platform GitHub, which is widely used for storing, sharing, and collaborating on code, will apparently soon be a Microsoft company.

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

GitHub for its part was reportedly willing to sell itself to Microsoft than going public because it was "impressed" with Microsoft CEO Satya Nadella and how he actively backed programmers and programming initiatives since he took over the reins of the company back in 2014. In total, some 28 million developers use GitHub, with 85 million code repositories. The Verge notes that Microsoft even hosts its own original Windows File Manager source code on GitHub.

"We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world's most pressing challenges", Nadella said.

The acquisition arrives at a time when experts say Wall Street has rewarded Microsoft for its long-term investment in cloud computing and its shifting, more open work culture fostered by chief executive Satya Nadella. Wanstrath will be replaced as CEO by Nat Friedman, the former CEO of Xamarin, which Microsoft acquired in 2016. David Heinemeier Hansson, creator of the Ruby on Rails framework, joined people that were forlorn about the deal, and tweeted that this would be a "sad end to the independence of GitHub".

It sounds very much like Microsoft is trying to make a new push for developers to use its tools and services, including its cloud systems, with this purchase of GitHub.

The deal reflects the company's ongoing pivot to open source software and seeks to further broaden its large and growing development community, Moody's analyst Richard Lane said.

In August, GitHub announced that it was looking for a CEO to replace Chris Wanstrath, one of the company's co-founders.

Shares of Microsoft are up 19% since the beginning of 2018. Secondly, he added that Microsoft will accelerate enterprise developers' use of GitHub, with "direct sales and partner channels and access to Microsoft's global cloud infrastructure".

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