The tech world was shocked by Microsoft’s recent announcement that it would be purchasing GitHub for a monstrous $7.5 billion, in what will be one of the biggest acquisitions to shakeup the tech scene in years. According to an announcement published by Microsoft on the company’s official blog, the software behemoth founded by Bill Gates and his team in 1975 will be purchasing the coding depositor GitHub in an effort to bolster its huge team of developers.
According to its announcement, Microsoft was eager to debut its GitHub acquisition to help push the message that it intends to use its new acquisition to help bolster developers in the future.
“More than 28 million developers already collaborate on GitHub, and it is home to more than 85 million code repositories used by people in nearly every country,” the company’s announcement noted.
Rumors have been swirling for years that Microsoft would be looking to buy up GitHub, but a deal has never come to fruition until now. While many claimed that the company’s senior executives merely had cold feet when it came to new purchases, the $7.5 billion deal, coupled with Microsoft’s earlier announcement that it would be scooping up LinkedIn, have put to rest claims that the software behemoth will be slowing down when it comes to expanding.
The Verge‘s reporting indicates that, after Microsoft’s huge deal with LinkedIn, its GitHub acquisition will be the second major deal struck by current CEO Satya Nadella. GitHub could have gone public on the market instead of selling, but was reportedly convinced by talks with Microsoft’s Nadella that under his leadership, the coding depository could become a fundamental instrument of Microsoft in the future.
GitHub was previously considered to be worth some $2 billion back in 2015, when rumors about a potential acquisition were gaining traction, making its huge $7.5 billion deal with Microsoft all the more impressive for the tech company. GitHub’s growing importance and valuation in recent years could be seen with the benefit of hindsight in some previous announcements.
Microsoft’s decision to integrate GitHub’s services into its App Center, for instance, is a clear factor in hindsight that the company was ramping up its commitment to GitHub. By making GitHub’s services available to developers through its App Center, Microsoft essentially buoyed the company’s future prospects by bolstering it with its own platform. Now, GitHub and Microsoft’s fates will be intertwined as they head to the future under the same corporate umbrella.