Microsoft reportedly buys code-sharing site GitHub

Noel Cummings
June 4, 2018

While this may result in some more exciting and creative software being developed by Microsoft, the details on the degree of ownership and control it would have over the code stored on GitHub are yet to be made clear, and users are cautious.

The reported acquisition comes amid the San Francisco-based company's almost year-long search for a new CEO, as well as its first profit from its services.

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GitHub is an online code repository which was formally founded in 2008 by Chris Wanstrath and Tom Preston-Werner.

Deal talks between the two companies were first reported by Business Insider on Friday.

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Both Microsoft and GitHub haven't responded to requests for comment. GitHub was last valued in 2015 at $2 billion. The two companies have explored a potential deal over the years; at one point last year, a $5 billion deal for GitHub was floated, multiple people told Business Insider. Microsoft CEO Nadella has been moving the company away from hesitations with open-source software development and investing more heavily in resources like GitHub. Just six months ago, GitHub showed its determination to stay independent, seeking funding and later pursuing an initial public offering, however, it seems the company is changing its course. Many corporations, including Microsoft and Alphabet Inc.'s Google, use GitHub to store their corporate code and to collaborate. The company joined the Open Source Initiative as a full member late previous year and has also open-sourced various components of Windows itself, alongside many other gestures of goodwill.

On the other hand, GitHub is one of the most used tools by the developers all over the world.

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They can also use Gitlab, which quickly capitalized on developer angst Sunday with a live YouTube video explaining how to get up and running with its similar service, although less than 200 people were watching it when I joined about ten minutes after it got started. It lost some $66 million over three quarters in 2016. While those talks may have died down, the possible inclusion of Ramaswamy to the company's board may curb Microsoft's prospects for a buyout.

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