Published: Mon, June 04, 2018
Industry | By Jeannie Evans

Microsoft agrees to acquire coding website Github

Microsoft agrees to acquire coding website Github

The company now values at $2 billion after it received $250 million in a 2015 funding round.

Talks between Microsoft and GitHub have been going on for a number of years now, and a new report suggests that an acquisition is closer than ever.

Now even the big companies of our day, including Microsoft, use Github as an important tool in their software development processes.

Microsoft's spokespeople have declined to comment on the decision.

Neither Microsoft nor GitHub have commented on the matter.

Despite all those users, Github was not making money, and it probably wasn't long for the world as a independent company. One closely watched aspect of this deal will be whether fierce competitors like Amazon Web Services and Google continue to store code on a Microsoft-owned property. It's also a social network of sorts for developers.

According to the Bloomberg report, GitHub lost $66 million over three quarters in 2016 and remains in the red. Co-founder Chris Wanstrath left the company back in August, and Chief Business Officer Julio Avalos has been in charge of day-to-day matters in the interim. GitHub was attracted to a deal with Microsoft in part because of Microsoft CEO Satya Nadella, the report noted. Recently they began talks about a partnership but progressed to discussing an acquisition, according to another person familiar with the situation.

Microsoft is believed to have entered into an agreement to buy code repository site GitHub. As Nadella increasingly 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.

Two days ago we reported on a rumour that Microsoft was in talks to purchase Github, but that Microsoft was reportedly baulking at Github's $5 billion asking price.

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