Microsoft is reportedly buying the code-sharing site GitHub, a developer-focused startup that has become a crucial part of the programming industry since it was founded in 2008. The site allows developers to upload open-source software so other developers can tweak and improve upon the code.
The code repository has been used by some of software development’s biggest names including Apple, Google, and Amazon.
Nevertheless, Nadella is one man, and many of his policies, particularly surrounding the companies hero products like Windows and Office, are deeply divisive (understatement). Their spread threatened Microsoft’s control over what software got installed on the world’s PCs.
The company says that it is today “all-in on open source” and promises to maintain open access. One thing that will definitely happen if this acquisition goes through is GitHub’s infrastructure moving to Microsoft’s Azure cloud computing service. In case you’re wondering what will happen to current CEO Chris Wanstrath, he’ll continue his work as a Microsoft technical fellow.
Rob Enderle, principal analyst of Enderle Group, offered a similar assessment, telling SiliconANGLE that these concerns may have been realistic in the old days, but not so much now. Microsoft has become the biggest contributor to the repository. Microsoft expects the acquisition will be accretive to operating income in fiscal year 2020 on a non-GAAP basis, and to have minimal dilution of less than 1 percent to earnings per share in fiscal years 2019 and 2020 on a non-GAAP basis, based on the expected close time frame.
A source with insights into the ongoing negotiations told CNBC that the deal first came about as a result of discussions around a joint $35 million marketing partnership. “For Microsoft it means that it now owns an asset which matters to most developers”. GitHub allegedly hosts over 80 million code repositories and 27 million developer accounts.
Why does Microsoft want it?
Yet while Microsoft’s stance toward open source has changed over the last few years, many open source developers will keep a very close look at what the company will do with GitHub after the acquisition .