Plans are underway to have Microsoft buyout Github; a software developer platform. A report by CNBC indicates that the two have been in progressive talks of acquisition. The deal valued at around $35 million will take the duo into a joint marketing partnership. However, reliable sources reveal that GitHub’s offer price for the full acquisition is likely to have been higher than what Microsoft was willing to pay.
At first, Microsoft expressed some unwillingness to part with the hefty price, which the Francisco, California-headquartered was asking for. However, the companies have been having more serious conversations, headed towards closing the deal.
GitHub’s tools have become essential to software developers
Apparently, this is not the first time that Microsoft is flirting with the purchase of GitHub. Reports, which Github is yet to confirm, reveal that the tech firm had a similar idea in 2016. Meanwhile, the demand for GitHub’s tools by software developers is increasing by the day. The tools are in common use for code storage, keeping track of updates and discussing issues.
The partnership will primarily be essential in helping Microsoft developers build applications on various platforms such as the Azure cloud. On the other hand, the company is also embracing open source and AI. In any case, it has become the largest distributor of open source and has already let go the Microsoft App Center App to the GitHub marketplace.
The acquisition is also likely to boost Microsoft’s artificial intelligence efforts. Other offerings, which are growing very fast, include machine learning and deep learning projects. Microsoft is not hiding its interest in strengthening its market presence.
But it has not been all rosy for Github
Github boasts of having more than 23 million individual users spread out across more than 1.5 million organizations. The privately held company has a track record of having booked more than $200 million in subscription revenue.
However, there is more into the partnership. GitHub has been fighting discrimination accusations. The company is also reported to have been struggling with leadership issues. The company is on its way into replacing its CEO and founder, Chris Wanstrath. The CEO tendered his resignation 10 months ago. However, rumor has it that Github could be hiring Microsoft exec, Nat Friedman, for the CEO position. Sridhar Ramaswamy, Google’s senior VP of ads and commerce is also a likely candidate for the CEO’s role.
All said and done, the two have a way of benefiting from each other; thanks to the rising demand for enhanced technology.