Microsoft buys GitHub for USD 7.5 bln in stock

News General Global 4 JUN 2018
Microsoft buys GitHub for USD 7.5 bln in stock
Microsoft has acquired software development platform GitHub for USD 7.5 billion in stock. The platform has over 28 million developers using it. Microsoft VP and Xamarin founder Nat Friedman will become GitHub’s CEO, replacing current chief Chris Wanstrath, who will become a Microsoft technical fellow, reporting to EVP Scott Guthrie, to work on strategic software initiatives. To help with the purchase, Apple will probably soon launch a new and larger than normal share buyback programme. It will also use part of the remaining USD 30 billion of its current share buyback programme.

Upon closing, GitHub's financials will be reported under Microsoft’s Intelligent Cloud segment. Microsoft expects the acquisition to be accretive to operating profit in fiscal year 2020 on an adjusted basis, and to have a minimal dilution effect. 

Microsoft said GitHub will retain its developer-first ethos and will operate independently to provide an open platform for all developers in all industries. Developers will continue to be able to use the programming languages, tools and operating systems of their choice for their projects, and will still be able to deploy their code to any operating system, any cloud and any device. CEO Satya Nadella said the moves shows the company’s commitment to developer freedom, openness and innovation. With GitHub, the company said it will look to  accelerate enterprise use of GitHub, and bring its own developer tools and services to new audiences.

Categories:

General

Companies:

Apple,  Microsoft

Regions:

Global

Tags:

Corporate strategy, Financial funding, M&A buyouts & divestments, Officers & directors

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