Microsoft will pay $7.5 billion to acquire software development and collaboration platform GitHub.
Under the terms of the agreement, Microsoft will acquire GitHub for $7.5 billion in Microsoft stock.
GitHub is a cloud-based repository for source code, offering hosting, version control management and code collaboration capabilities. It is thought to have 27 million developers using its services in nearly every country in the world, and to host 80 million code repositories. Microsoft is already a major user of GitHub, reportedly with more than 1,000 employees pushing code to GitHub repositories.
GitHub was valued at $2 billion dollars at its most recent funding round in 2015.
The acquisition makes sense for Microsoft with its increasing involvement with Linux and open source projects. There is, however, concern among many of the independent developers using the service, pointing to a perceived performance reduction from both LinkedIn and Skype following earlier acquisition by Microsoft.
A further concern is that ownership could give Microsoft access to the source of potentially competitive or disruptive projects.
The deal should close by the end of 2018, subject to customary closing conditions and regulatory review.