Microsoft confirms to purchase code sharing site GitHub for $ 7.5 billion

The popular Git-based code sharing and collaboration service GitHub is going to be acquired by Microsoft, confirmed after many rumors. $7.5 billion is the price for this remarkable  acquisition. The San Francisco-based company was invented in 2005 by Linux founder Linus Torvalds and value of the company in 2015 was nearly $2 billion.

This  popular code repository hosting service is  used by more than 28 million users around the world  and tech giants including Google, Facebook, IBM , Apple  and Amazon to reserve their corporate code and privately collaborate on software. In addition to this, Microsoft is  also one of the top contributors to GitHub.

Microsoft has confirmed in a blog post  that it will buy GitHub for $7.5 billion in Microsoft stock, and the deal is expected to close by the end of 2018.

“GitHub will retain its developer-first ethos and will operate independently to provide an open platform for all developers in all industries. 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.”

“Microsoft Corporate Vice President Nat Friedman, founder of Xamarin and an open source veteran, will assume the role of GitHub CEO. GitHub’s current CEO, Chris Wanstrath, will become a Microsoft technical fellow, reporting to Executive Vice President Scott Guthrie, to work on strategic software initiatives.”

Bloomberg has reported  that GitHub swayed to sell to Microsoft in part instead of going public  because it was impressed with the performance and leadership of Microsoft’s CEO Satya Nadella.

“Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation,”  Microsoft’s CEO said in a statement.

This deal is  Microsoft’s second big  acquisition since paying $26 billion for LinkedIn in December 2016.

Codeplex,an open-source code platform created  by Microsoft was closed in 2017. The company apparently understood that GitHub was the desired platform for developers hence deciding to own it rather than competing against it.