Microsoft has acquired software repository platform GitHub and the official announcement is likely to be made early this week.
The details of the agreement should be revealed around that time, in what is seen as a big coup for the Redmond-based technology giant.
Multiple reports say that GitHub decided against going public, and apparently found Microsoft’s interest and its plans convincing enough to go ahead. The San Francisco, California-headquartered GitHub has more than 23 million individual users in more than 1.5 million organisations.
Software developers use the tools of the privately-held company to store code, keep track of updates and discuss issues. The report also had that Satya Nadella, CEO, Microsoft impressed the guys at GitHub.
According to a CNBC report, the talks of acquisition progressed from a planned joint marketing partnership valued around $35 million.
GitHub was last valued at $2 billion in its last funding round in 2015.
The software hub has been an essential tool for coders. In addition to that, even its rivals Microsoft and Google have actively used the platform to store their codes and even collaborate on it.
Based on a price that was floated last year, the report said that acquiring GitHub could cost Microsoft $5 billion, more than what Microsoft currently wanted to pay.
The talks come at a time when GitHub is reportedly struggling to replace CEO and founder Chris Wanstrath, who announced his resignation about 10 months ago. This isn’t the first time when Microsoft expressed interest in buying GitHub but looks like Nadella and Co have finally got the break.
It remains to be seen what Microsoft plans on utilising the platform for. Either they could absorb its technical support to further develop their in-house applications, or outsource them to developers of all platforms, be it Windows, iOS or even Android.
(With inputs from Bloomberg)
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