Microsoft in gossips to buy GitHub, a software development platform that has intensified in the past few weeks, the Business Insider reported. The acquisition talks turning serious mark a change of strategy as just six months ago GitHub appeared committed to staying independent, the report said on Friday citing people close to the companies.
The San Francisco, California-headquartered GitHub has more than 23 million individual users in more than 1.5 million organizations. Software developers use the tools of the privately-held company to store code, keep track of updates and discuss issues. According to a CNBC report, the talks of acquisition progressed from a planned joint marketing partnership valued around $35 million. That’s why Microsoft in gossips to buy GitHub for increasing users.
GitHub was last valued at $2 billion in its last funding round in 2015. Based on a price that was floated last year, the report said that acquiring GitHub could cost Microsoft $5 billion or more – more than what Microsoft in gossips to buy GitHub and currently wanted to pay.
The talks come at a time when GitHub is reportedly struggling to replace CEO and founder Chris Wanstrath, who announced his resignation about 10 months ago. Microsoft in gossips to buy GitHub in the past too, including in 2016, although GitHub did not confirm those reports.
A partnership would give Microsoft another connection point to the developers it needs to court to build applications on its various platforms, including the Azure cloud. Microsoft could also use data from GitHub to improve its artificial intelligence products.Microsoft in gossips to buy GitHub’s struggle to replace CEO and founder Chris Wanstrath, who stepped down 10 months ago. Business Insider reported that Microsoft exec Nat Friedman — who previously ran Xamarin, a developer tools start-up that Microsoft acquired in 2016 — may take that CEO role. Google’s senior VP of ads and commerce, Sridhar Ramaswamy, has also been in discussions for the job, says the report.