Microsoft Corp. on Monday said it will grow its software development capabilities through a $7.5 billion deal to acquire GitHub Inc., with Simpson Thacher & Bartlett LLP guiding the technology giant.
Microsoft's acquisition of GitHub aims "to empower developers to achieve more at every stage of the development lifecycle, accelerate enterprise use of GitHub, and bring Microsoft's developer tools and services to new audiences", the company said in a statement. "And GitHub is their home", Nedalla wrote in his official blog post Monday. Meanwhile, Microsoft's acquisition of GitHub is a strategic move that aligns with the company's pursuit of securing more developers. "We're supporting a community where more than 27 million* people learn, share, and work together to build software", according to the company's website. The deal will be finalized by year's end, and current Microsoft VP Nat Friedman will serve as GitHub's CEO. The privately-held company has more than 23 million individual users in more than 1.5 million organizations.
While predecessor Steve Ballmer saw open source as a threat, allowing competitors to compete with its high-end tools off a shared base, Nadella saw that shared base as essential toward driving software forward, and to securing it.
In any case, one of the biggest benefits of the acquisition to Microsoft will naturally be the development resources that it will then have at its disposal. "Every workflow that a developer wants to pursue, we will support".
Microsoft (NASDAQ: MSFT) pledged to retain GitHub's "developer-first ethos", adding that the new unit would operate independently to "provide an open platform for all developers in all industries".
It's free to use GitHub for open-source projects, but some developers and businesses pay a monthly fee to access private code repositories and other services.
With this deal, Microsoft has transformed itself, in less than five years, from the open source villain into the open source leader. I wonder what August 2017, after the resignation of the CEO of co-founder Chris Wanstrath, in GitHub there is no single leader.
The deal certainly makes sense for Microsoft as the software giant continues to attract developers.