Microsoft Buys GitHub for $7.5 Billion to Expand Developer Reach
Microsoft acquires the world's largest code-hosting platform for $7.5 billion in stock. The tech giant plans to operate GitHub independently while integrating it into its broader developer ecosystem.
Microsoft officially confirms its acquisition of GitHub for $7.5 billion in Microsoft stock, ending a week of intense speculation. The deal brings the world's largest source code host, which boasts 28 million developers and 85 million code repositories, under the Microsoft umbrella. Former Xamarin CEO Nat Friedman takes over as GitHub's new CEO, while founder Chris Wanstrath transitions to a Microsoft technical fellow role.
Despite its massive popularity and status as a cornerstone of modern software development, GitHub has never turned a profit. The platform generates revenue primarily through paid enterprise accounts that offer private repositories, with prices ranging from $7 to $21 per user per month. Faced with ongoing operating losses and stiff competition from services like GitLab and Bitbucket, GitHub opts for an acquisition rather than attempting a public IPO.
Microsoft plans to operate GitHub independently, allowing the platform to retain its developer-first ethos much like it does with LinkedIn. This strategic move aligns perfectly with Microsoft's current ambition to serve as the ultimate platform for every developer, regardless of their preferred operating system or tools. The acquisition essentially absorbs a former competitor into Microsoft's expanding suite of developer services.