Microsoft on Monday (June 4, 2018) officially announced that they have reached an agreement to acquire GitHub, the world’s leading software development platform for $7.5 billion in Microsoft stock.
Now, those who know what GitHub is or used this popular open source platform can imagine the magnitude of this business deal. But many nontechnical people do not have any idea what is GitHub.
Here’s a brief introduction who they are and what their platform does.
Chris Wanstrath, CEO, and Co-Founder of GitHub started this venture with the sole purpose of making developers more productive, where they come together, work together, solve challenging problems, and create technologies. As of June 2018, GitHub has more than 28 million people on their platform and 85 million repositories hosted.
In an official blog, Chris has stated, “I am very excited to announce that Microsoft is acquiring GitHub and expect the agreement to close by the end of the year. While it will still take a few months to finalize, we wanted to share the news as soon as we were able.”
As soon as the news broke that day, people who are using GitHub started questioning about what will be the future of this popular open source platform.
Microsoft on this stated that “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.”
As part of this business deal Nat Friedman, Microsoft corporate vice president, Developer Services will be taking on the role of GitHub’s CEO and Chris Wanstrath will be taking a new role at Microsoft working closely with Nat and his team.
Now that Microsoft has acquired GitHub, the two companies will now work on three primary objectives.
1. Empowering developers at every stage of the development cycle. Microsoft also stated that GitHub will remain as an open platform which any programmer can plug into and extend.
2. Accelerating developers’ use of GitHub with Microsoft’s direct sales and partner channels.
3. Introduce Microsoft’s developer tools and services to a new audience.
In July 2015, GitHub raised close to $250 million of venture capital in a series B round and as of August 2016, GitHub was making $140 million in Annual Recurring Revenue.
Let us know in the comments what do you think of this business deal.