GitHub was last valued at $2 billion in 2015. Reports of Microsoft buying it out surface at a time when its CEO quit 10 months ago
GitHub, the online repository hosting service for git, could well be bought over by Microsoft. According to a report by CNBC, GitHub was last valued at $2 billion in 2015, but the cost of the acquisition could rise to $5 billion now. Apparently, CNBC was told by a source familiar with the two companies that they had been considering a joint marketing partnership valued around $35 million, and that either an investment in the business or an outright acquisition would take place. However, the current situation remains unclear. CNBC’s contact said the price for an acquisition was more than what Microsoft wanted to pay.
GitHub, whose headquarters is in San Francisco, California, has over 23 million individual users in more than 1.5 million organisations. GitHub is used by software developers to store code, keep track of changes to it, and discuss issues around it. GitHub is a repository that’s open to the community. It allows developers to have their code reviewed by others on the community. Furthermore, GitHub is integrated with common cloud computing platforms like Amazon and Google Cloud.
As per the report, Microsoft has toyed with the idea of buying GitHub out in the past, as early as 2016, although GitHub denied reports of any such happenings. A partnership, apparently, can help Microsoft reach out to software developers more easily to build applications on its numerous platforms, including Microsoft Azure, Microsoft’s cloud service for helping businesses build, manage, and deploy applications. It may also help the company build artificial intelligence products better.