It’s official – Microsoft has confirmed it’s acquiring code repository site GitHub for a staggering $7.5 billon. That’s $5.5 billion more than the company was valued at just 3 years ago, making it the second big acquisition for Microsoft CEO Satya Nadella, after the $26.2 billion deal for LinkedIn in 2016.
The deal certainly makes sense from Microsoft’s perspective, especially as the payment will be made in stock, not cash. It also killed off its own GitHub competitor, Codeplex, back in December and is now the biggest single contributor to the website, with over 1,000 of its employees actively using it to share code. With that said, the acquisition appears to have spooked a lot of developers – GitLab, a competitor to GitHub, claims it has seen a 10x increase in the amount of developers moving their repositories to its service on a daily basis. A quick browse of Reddit also proves developers are wary of what Microsoft has planned for the service.
“When GitHub first launched ten years ago, I could have never imagined this headline. Git was a powerful but niche tool, clouds were just things in the sky, and Microsoft was a very different company. Open source and business, people said at the time, mixed as well as oil and water,” writes Chris Wanstrath, the co-founder of GitHub. “Now, of course, things are different. Git is far and away the most popular version control system, clouds are mostly computers, and Microsoft is the most active organization on GitHub in the world […] We both see the growing need for developers and the growing importance of software in all facets of our lives. And, most importantly, we both believe we can do greater things together than alone. Collaboration, after all, is at the heart of everything we do.”
The deal is expected to be finalised by the end of the year.