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Microsoft is acquiring GitHub for $7.5 billion USD

over 4 years ago by IanDorfman

GitHub has agreed to being acquired by Microsoft for 7.5 billion U.S. dollars, with Microsoft Corporate Vice President Nat Friedman becoming the open source repository database's Chief Executive Officer. GitHub's current CEO, Chris Wanstrath, will become a "technical fellow" at Microsoft that reports to Executive Vice President Scott Guthrie.

According to the official Microsoft news post announcing the acquisition, GitHub will continue to operate independently from the rest of Microsoft "to provide an open platform for all developers in all industries," adding that no restrictions will be placed on users in terms of their choice of programming language and supported operating systems and devices for their open source software projects.

Microsoft expects the acquisition to close by the end of the 2018 calendar year. Microsoft will be grouping GitHub's financial contributions within its "Intelligent Cloud" segment, with it becoming a profitable part of the company's overall business by 2020.

This stands as a marked change for GitHub, which was previously independent and funded its previous exponential growth with venture capital funding. Concerns have risen regarding the acquisition by Microsoft as being a way to have GitHub fall victim to its infamous "Embrace, extend, and extinguish" ethos, potentially refining GitHub with additional proprietary enhancements that could endanger open source Git-based version control system alternatives such as GitLab.

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GitHub is a web-based hosting service for projects that use the Git revision control system. It is written in Ruby on Rails by Logical Awesome developers Chris Wanstrath, PJ Hyett, and Tom Preston-Werner.