Microsoft’s purchase of Github reportedly a done deal

Two days ago we reported on a rumour that Microsoft was in talks to purchase Github, but that Microsoft was reportedly baulking at Github’s $5 billion asking price.

Now Bloomberg reports that the companies have come to an agreement, and the purchase is now a done deal, and may be announced as soon as tomorrow.

Github, which was valued at $2 billion back in 2015,  generates $200 million in subscription revenue including $110 million from enterprise customers, but is not currently profitable, having lost $66 million over three quarters in 2016.

According to Bloomberg’s sources the Github team, who has not had a CEO for 10 months,  were reportedly impressed by the outward-looking Satya Nadella. Microsoft is currently the biggest open source contributor on GitHub.

While Microsoft has a history of disastrous acquisitions in the past, in recent years the company has been a lot more successful, with recent examples like Xamarin and LinkedIn coming to mind, which bodes well for Microsoft’s stewardship of Github.

Read our earlier report on the proposed deal here.

Some links in the article may not be viewable as you are using an AdBlocker. Please add us to your whitelist to enable the website to function properly.