Microsoft recently made an announcement that it was acquiring GitHub for $ 7.5 billion. It will be all stock deal. According to a statement released by Microsoft after the announcement, Github acquisition will provide the developers at Microsoft as well as all over around the world with more tools to accelerate development.
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Why did Microsoft buy GitHub?
Getup is the perfect option for Microsoft to connect with the developers. The business model of the company has evolved. It is trying to attract more developers in order to build applications on the Microsoft store. The best way to do so is to surely provide developers with more tools which will attract them to the Microsoft ecosystem. Also, under the new CEO Satya Nadella, the company is moving more and more towards open source technology. GitHub is also at the center of open source technology as it provides essential tools to the developers. The acquisition of GitHub will actually take Microsoft closer to its roots.
Why is GitHub selling?
GitHub, either had the option of going public or selling. The management team met the CEO of Microsoft and very impressed by his vision of the developer community. As a result, they decided to sell out rather than go public. Also, GitHub was looking for a CEO since last year when the previous one resigned on charges of sexual harassment. The company is also in losses.
Why is everyone worried?
Many developers think that this is actually the end of GitHub. The reason for this is that up until now, Microsoft has not been supportive of open source development. This is the reason why many developers think that Microsoft will modify GitHub which will actually defeat the core values of GitHub. Also, there are rumors that it may end up hurting developers which are heavily reliant on GitHub. Only time will tell whether Microsoft acquires GitHub or whether it remains the same.
For now, however, the all-stock deal of $ 7.5 billion is sure to send shockwaves across the tech community. It will be one of the biggest acquisitions of Microsoft. Also, with Microsoft acquiring a platform which is essentially for open source developers, it remains to be seen whether Microsoft embraces the open source development in a much bigger way or whether this is just one of acquisition. Only time will tell whether open source development receives more impetus due to this acquisition or it is just another acquisition by Microsoft.
