GitHub has become an essential way to connect with developers as the company's business model has evolved and allowed it to open itself to open-source code. On Sunday, citing internal sources, Bloomberg reported that the deal was already done, and set to be announced on Monday. Microsoft is no stranger to ingesting huge companies.
It's worth noting how will the developer community react to this acquisition.
GitHub is one of the most popular platforms in the software development world today.
GitHub now hits 27 million software developers and 80 million repositories of code, according to Bloomberg.
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. Now it looks as though Microsoft may be its new owner.
But despite its popularity with enterprise users, individual developers and open source projects, GitHub has never turned a profit and chances are that the company decided that an acquisition was preferable over trying to IPO.More news: Federal Bureau of Investigation agent accidentally shoots someone at nightclub while doing a backflip
Microsoft has paid out more for other services in the past: LinkedIn cost the tech giant around US$26 billion and US$8.5 billion was the price for the acquisition of Skype. GitHub allegedly hosts over 80 million code repositories and 27 million developer accounts.
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. Developers will continue to be able to use the programming languages, tools and operating systems of their choice for their projects - and will still be able to deploy their code to any operating system, any cloud and any device.
" From the largest corporations to the smallest startups, GitHub is the destination for developers to learn, share and work together to create software". In August 2017, CEO Chris Wanstrath announced he would step down. In fact, just previous year, Microsoft shut down CodePlex, which is like GitHub although it launched back in 2006.
In many ways, Microsoft's acquisition of GitHub is a move back to its roots as a company founded to help people make use of the MITS Altair, a consumer-oriented micro-computer kit.
Many firms depend on GitHub to collaborate and build their products.