For developers, who are willing to store, share and discuss anything related to code, GitHub is a household name for them. Unfortunately, with their CEO, Chris Wanstrath all set to leave; they are struggling to find his replacement to lead the organization. Microsoft would like to seize the opportunity, as CNBC and Business Insider have reported that Microsoft had talks with GitHub in the last few weeks, which had started off with a joint marketing deal, leading to more concrete talks of either an investment or of acquiring the company altogether.
CNBC had also gone on to report that the only hurdle to the possible deal could be the price. On one hand, where GitHub was demanding more for being taken over by Microsoft, the latter’s current price was not close to their requirement. 2015 funding round had seen GitHub being valued at $2 billion and this possible acquisition by Microsoft could raise the valuation amount to $5 billion.
Microsoft’s largest acquisition to date has been the deal to take over LinkedIn for $26 billion, their social network. The similarity has been found for GitHub with LinkedIn, as GitHub could well be called as the LinkedIn for developers. Here, the public profile would serve as the resume to a certain extent, though code written for internal use is kept private.
There have been no official comments from either side. A number of reasons have been thought of, why Microsoft would want to take up GitHub. First, it would give Microsoft a major resource for the developer, which could be critical to boosting up adoption of literally everything it manufactures, be it Windows 10 or its cloud computing platform, Azure.
Moreover, it would also enable Microsoft to make use of GitHub’s data and improve upon their Artificial Intelligence businesses. This could result in creating uncertainty among developers, where they might not be interested to write for Microsoft’s platforms, thinking if they would get the same support. Still, if the buyout results in smooth functioning of GitHub, then they might think otherwise.