Microsoft Purchases Code-Sharing Website GitHub

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GitHub makes it easy for users to share, copy and tweak code-handy when several remote people collaborate on a project, for example. Microsoft's work on open source has inspired the GitHub team.

Microsoft's decision to purchase the firm is the latest sign of the tech giant's embrace of open-source software under the leadership of CEO Satya Nadella.

In 2017, Microsoft shuttered its GitHub competitor, CodePlex, and partnered with GitHub on migration tools for developers who were hosting projects on CodePlex.

"Developers will be at the center of solving the world's most pressing challenges", Nadella said in a blog post Monday. Microsoft seemingly understood that GitHub was the preferred platform for developers and made a decision to acquire it instead of competing against it.

GitHub co-founder and CEO Chris Wanstrath will join Microsoft as a "Technical Fellow", said Microsoft, and Microsoft's VP of developer services Nat Friedman will become GitHub's CEO.

Moving forward, Microsoft is going to have quite the task on its hands proving to developers that it can both improve upon GitHub's past debacles, as well as its own numerous slip ups. Co-founder and CEO Chris Wanstrath stepped down in August, and the company never replaced him.

"When we're building free software or open source tools we must reject proprietary software development tools", Hill said.

Microsoft has agreed to acquire GitHub for $7.5 billion in stock. Subject to customary closing conditions and regulatory approval, the acquisition is expected to close by the end of 2018.

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There is a GitHub replacement called GitLab, but developers are still split on the news. Their VS Code project alone is beloved by millions of developers, entirely open source, and built using GitHub's Electron platform.

As Nadella moves the company away from complete dependence on the Windows operating system to more in-house development on Linux, the company needs new ways to connect with the broader developer community.

"Git was a powerful but niche tool, clouds were just things in the sky, and Microsoft was a very different company".

Microsoft purchased GitHub for $7.5 billion.

"Today, we are all in with open source", he said. Now, he said, "Microsoft is the most active organization on GitHub in the world".

Business Insider spoke to Friedman and Wanstrath following news of the acquisition, where the two laid out the master plan for GitHub after the deal closes later this year.

The deal should help build Microsoft's presence in the enterprise open source software market.

That's not to say that Microsoft won't do all it can to convince GitHub users to ditch AWS or Google and use Azure. It is unclear whether talks are still ongoing, but this person said that GitHub's price for a full acquisition was more than Microsoft now wanted to pay.

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