Microsoft Sealed The Deal In $7.5 billion With GitHub

Microsoft and GitHub
source: Microsoft

Rumors were in the air for quite a long time regarding a possible acquisition deal between Microsoft and popular code repository, GitHub. But now we have the latest technology news for you that has put all the rumors to end.

The rumors started pouring in the tech world regarding this high-profile deal between the two giants in the month of June. And as soon as the month ended, Microsoft had shut down the rumors as well by announcing the billion dollars deal that will close later this year.

Microsoft acquired GitHub in a $7.5 billion full-stock deal :

Like I said talks have been traveling around in the tech world after the Business Insider broke out one of the top news stories of the tech world. Back then, according to Business Insider, the two tech-giants came together to discuss a joint market venture and a potential acquisition too.

The news became more trending as the leading code repository, Github, kind of ‘backed-off’ from its own motto.

Barely six months ago, GitHub showed its determination to stay independent, seeking funding, and later pursuing an initial public offering. But the news that broke out about possible dealings between Microsoft and GitHub showed that the company is changing its course.

Well, it is not like the rumors and speculations emerged all of a sudden. The two tech giants have been part of the news for having conversations regarding a possible acquisition every now and then.  However, the conversations were mostly about the acquisition and nothing materialized but look at what we have got here now.

Microsoft stock went 2 percent higher after acquisition:



Soon after the rumors turned real, the mighty technology firm witnessed a 2 percent rise in its stock.

This tech news broke out by which showed the hidden lucky-charm behind this rise in Microsoft stock.

According to the report Microsoft’s stock went up to two percent right after the Business Insider report came out.

Comparing the past with the present: Here’s what rumors had one month ago

Like I’ve mentioned above the talks between these two giants weren’t new for the technology world. Technology geeks have been bidding on how much will Github demand in case of a possible acquisition.

After the report of Business Insider in 2018. We heard some speculation regarding Microsoft’s plans to acquire GitHub but some people thought it was been so late. Because of CEO of GitHub Chris Wanstrath, who had stepped down in August 2017.

However, he continued to be at the company in the transition period. While the code repository could not found any replacement back then. GitHub was last valued in 2015 at $2 billion. It is now rumored that the Microsoft and GitHub deal may lie around $5 billion which might be too high for Microsoft’s consideration.

Now that we know the actual technology news, it’s safe to replace the number 5 with number 7.

The announcement of Nat Friedman as the CEO of GitHub might be the reason of this acquisition:


Nat Friedman, the founder of Xamarin has been announced as the new CEO of GitHub. He will report to Scott Guthrie, Microsoft’s Cloud and AI Chief. GitHub’s previous CEO and Co-Founder, Chris Wanstrath left his position o 2017. But he will be joining Microsoft as a Technical Fellow and will also be reporting to the Cloud and AI Chief.

What changes will this acquisition bring for the Microsoft:


Being the gold mine of talent, data, and resources GitHub can bring beneficial changes to this huge tech platform. Now that finally, this acquisition has fallen through, Microsoft will benefit immensely by gaining access to millions of developers and companies who can prove to be potential users for Microsoft’s cloud services and other technology products.

Not only does the company has magnificent talent but GitHub enjoys great popularity amongst developers and companies who host their code, entire projects, and documentation on the platform.

Hosting 85 million repositories and 28 million contributing developers GitHub is also being used by major technology companies such as Apple, Amazon, and Google. Competing with GitHub, Microsoft also launched Codeplex but later killed the project to become the top contributor on GitHub. With over 1000 employees contributing to code repositories.

Will GitHub remain independent after the acquisition, like LinkedIn?


This is not the first time that Microsoft acquired a big acquisition. Back in 2016, the technology company had its first big acquisition with LinkedIn. After the acquisition, LinkedIn has largely remained a separate entity just with some integration of Microsoft Office.

This is said to be the second big acquisition of Satya Nadella, CEO of Microsoft. And Microsoft has assured that GitHub will remain independent and open. However, it is yet to be seen how Microsoft will expand GitHub’s enterprise services.

By Maira Feroz

A journalism student who's studying the native form of journalism but is performing it in the digital way.