Published: Mon, June 04, 2018
Business | By Eloise Houston

Microsoft may be considering GitHub acquisition

It's not known how much Microsoft is willing to pay for the company, but it seems likely it would be at least a small multiple of the last valuation. Last year, Microsoft surprisingly moved to the Git version-control system for Windows development. Rumors have been in the air for quite some time now of the intentions by Microsoft to seal the deal with respect to buying GitHub this year. Wanstrath had retaken his CEO role after his co-founder Tom Preston-Werner resigned following a harassment investigation in 2014.

Microsoft, the software giant, is reportedly in serious talks of acquiring GitHub, the largest source-code repository in the world, reports Business Insider.

According to the new report, Microsoft may have to shell out in the region of US$5 billion to add GitHub to its growing list of mergers and acquisitions. Lowering the pricing on private accounts would also be a positive. Linux and other software built on the open-source model, however, tend to be free. 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.

Users on Twitter had mixed feelings about how Microsoft may or may not influence GitHub.

More than 28 million developers already collaborate on GitHub, and it is home to more than 85 million code repositories used by people in almost every country.

Under the terms of the agreement, Microsoft will acquire GitHub for $7.5 billion in Microsoft stock. That's because there is a lot of distrust of Microsoft in this cohort, which is understandable given Microsoft's history. On Sunday, citing internal sources, Bloomberg reported that the deal was already done, and set to be announced on Monday.

GitHub hosts 27 million software developers working on 80 million repositories of code.

In March, the chief executive, Nadella, finished the reorganisation, axing the Windows division entirely and splitting its responsibilities between a consumer-focused group, led by a former Microsoft Office head, and a developer-focused one, led by the company's cloud and enterprise chief.

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