First announced in June, Microsoft said GitHub would remain an independent company. Today, the company reaffirmed that position: “GitHub will retain its developer-first ethos, operate independently, and remain an open platform. Together, the two companies will work together to empower developers to achieve more at every stage of the development lifecycle, accelerate enterprise use of GitHub, and bring Microsoft’s developer tools and services to new audiences.” That confirmation may ease the concerns of some developers, who were threatening to abandon GitHub. Some users also have concerns about Microsoft’s influence, despite assurances that GitHub will remain independent. When the acquisition was announced, we reported the $7.5 billion fee seemed high. GitHub was valued at $2 billion in 2015. Sure, the company has grown over the three years, but it seemed at least another party was challenging Microsoft. That other party turned out to be Google. Diane Greene, Google’s head of cloud hinted the company was competing with Microsoft: “I wouldn’t have minded buying them, but it’s OK,” Greene claims. That is not an admission of a bid, but it seems likely Google would have been interested in the service.
New Era
Microsoft CEO Satya Nadella previously said the acquisition furthers the company’s cloud-first ethos: “Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation. We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world’s most pressing challenges.” While continuing to operate independently, GitHub will fold into Microsoft’s Intelligent Cloud division for financial reports. The company says GitHub revenue will be added from the start of its fiscal 2020 financials, which will be announced next July.
