It’s official — Microsoft GitHub acquisition

MIcrosoft buy GitHub

Image Roland Moriz Flickr

On an adjusted basis, Microsoft expects the deal to add to its operating income in fiscal 2020 and reduce earnings per share by less than 1 percent in 2019 and 2020. The shares were up 0.6 percent to $101.38 at 9:55 NY. Third, Microsoft aims to bring more developer tools and services to the audience with the help of GitHub.

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. Former Xamarin CEO and current Microsoft corporate vice president Nat Friedman will take the helm at GitHub as CEO Chris Wanstrath transitions to a role as Microsoft technical fellow. Microsoft knows it can't afford to peeve developers, which is why it is being particularly vocal on its intentions to keep GitHub has it now is, allowing developers to deploy code to "any operating system, any cloud, and any device". One developer told Quartz he was concerned that Microsoft would use its ownership of the platform to monitor trends in software development in order to launch rival products, using largesse to preclude competition.

The coding company is one of the biggest resources in the world for software developers. Microsoft's CEO, Steve Ballmer, has even been quoted calling Linux a "cancer" in the past.

In fact, TechCrunch received a tip on Friday, which noted not only that the deal had already closed, but that open source software maintainers were already eyeing up alternatives and looking potentially to abandon GitHub in the wake of the deal. While Microsoft appears to be embracing the open-source community these days, it wasn't very long ago that it viewed open-source development as a threat to its core business model. This deal will mark another dramatic step in that direction.

It's free to use GitHub for open-source projects, but some developers and businesses pay a monthly fee to access private code repositories and other services.

Nadella said the GitHub acquisition demonstrates Microsoft's "commitment to developer freedom, openness and innovation".

San Francisco-based GitHub is an essential tool for coders. (AMZN) and Alphabet Inc.

Meanwhile, GitHub, which celebrated its 10th birthday recently, lost $66m in nine months during 2016 and has been searching for a new CEO for the past nine months. Microsoft holds that GitHub is the world's leading software development platform and home to 85 million code repositories. Microsoft is the top contributor to the platform, and it insists that it won't muck things up once the acquisition closes later this year, noting that GitHub will operate independently.

This is just the latest of Microsoft's efforts to connect with the developer community. "Each acquisition has been defined by an asset that was unique in its own way and could be leveraged in multiple parts of Microsoft".

Bloomberg is reporting that Microsoft has acquired GitHub, and will announce the deal on Monday.

Morgan Stanley acted as GitHub's banker, while Fenwick & West LLP served as legal adviser.

Latest News