Microsoft Corporation (NASDAQ: MSFT) said on Monday that it will acquire popular coding platform GitHub for $7.5 billion worth of Microsoft’s stock to expand on its cloud computing services.
The acquisition of GitHub is expected to improve the company’s relationship with software developers and to provide open-source software to a larger audience. More than 28 million developers use the service globally to collaborate with others, with Microsoft as the most active organization in its use. GitHub will benefit from Microsoft’s sales team, corporate partnerships, and cloud computing infrastructure. Previously, Microsoft acquired LinkedIn for $26 billion back in 2016. With the acquisition of GitHub as well, it hopes to compete with the market leader in Amazon. Last year, Microsoft shut down CodePlex and determined GitHub to be the superior company for open source sharing with projects exported to the latter platform.
After the acquisition, GitHub will join Microsoft’s Intelligent Cloud unit and they will still remain as an open platform that is independently operated and open to all industries. “[Microsoft’s] focus on developers lines up perfectly with our own, and their scale, tools and global cloud will play a huge role in making GitHub even more valuable for developers everywhere,” said GitHub current CEO Chris Wanstrath. Microsoft Vice President Nat Friedman will assume the role of CEO, with Wanstrath to become a Microsoft technical fellow.
The deal is expected to close by the end of the year by after regulatory review.