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Microsoft Is Said to Have Agreed to Acquire Coding Site GitHub (bloomberg.com)
Bloomberg reports:
Microsoft Corp. has agreed to acquire GitHub Inc., the code repository company popular with many software developers, and could announce the deal as soon as Monday, according to people familiar with the matter. GitHub preferred selling the company to going public and chose Microsoft partially because it was impressed by Chief Executive Officer Satya Nadella, said one of the people, who asked not to be identified discussing private information. Terms of the agreement weren't known on Sunday. GitHub was last valued at $2 billion in 2015.
GitHub is an essential tool for coders. Many corporations, including Microsoft and Alphabet Inc.'s Google, use GitHub to store their corporate code and to collaborate. It's also a social network of sorts for developers. While GitHub's losses have been significant -- it lost $66 million over three quarters in 2016 -- it had revenue of $98 million in nine months of that year.
On Friday, it was reported that Microsoft was in talks with GitHub about an acquisition. Now it seems like it's actually happening.
Update: Our sister site, SourceForge, has weighed in. Here is a tool that will import your GitHub project to SourceForge.
Update #2: Already, we are seeing plenty of backlash over this news. One user has started a petition to stop Microsoft from buying GitHub.
Update #3: It's official. Microsoft has acquired GitHub for a whopping sum of $7.5B.
Microsoft Corp. has agreed to acquire GitHub Inc., the code repository company popular with many software developers, and could announce the deal as soon as Monday, according to people familiar with the matter. GitHub preferred selling the company to going public and chose Microsoft partially because it was impressed by Chief Executive Officer Satya Nadella, said one of the people, who asked not to be identified discussing private information. Terms of the agreement weren't known on Sunday. GitHub was last valued at $2 billion in 2015.
GitHub is an essential tool for coders. Many corporations, including Microsoft and Alphabet Inc.'s Google, use GitHub to store their corporate code and to collaborate. It's also a social network of sorts for developers. While GitHub's losses have been significant -- it lost $66 million over three quarters in 2016 -- it had revenue of $98 million in nine months of that year.
On Friday, it was reported that Microsoft was in talks with GitHub about an acquisition. Now it seems like it's actually happening.
Update: Our sister site, SourceForge, has weighed in. Here is a tool that will import your GitHub project to SourceForge.
Update #2: Already, we are seeing plenty of backlash over this news. One user has started a petition to stop Microsoft from buying GitHub.
Update #3: It's official. Microsoft has acquired GitHub for a whopping sum of $7.5B.
It remains to be seen how much Microsoft has paid for GitHub, but why pay anything if they're unprofitable?
I keep seeing the same behavior that happened during the first dotcom boom - companies valued at stupid multiples of "earnings", including what are technically negative earnings, being valued far in excess of their worth. A company is only worth its future profits discounted at the rate of the next best investment of that money, minus its initial and ongoing investments. The longer it takes to return a profit, the exponentially more difficult it is to recover the initial investment. Only a fundamental change or an external factor like currency inflation can distort that picture into a supposedly rosy one.
Perhaps GitHub can have some of its cost structures reduced by riding on Microsoft's coattails. Perhaps there's some breakthrough that Microsoft can see with them, although I don't think there's a tremendous synergy there. The basic model has been there before (SourceForge), and it could technically be duplicated again by someone else. Many developers/repos will simply bail due to Microsoft's history of changing business terms. Heck, they rolled "Teams" out which is supposed to compete with Slack.
More power to the current owners of GitHub if they get bought out, as it's a great tool. I just think P.T. Barnum really was right, and I'm waiting for the other shoe to drop in this latest boom.
Why does everyone expect digital/virtual goods and services to be free? And then those same people flip shit about the advertising and sales of submitted and extrapolated data about them. The resources to host this stuff, and do so reliably, quickly, and securely, is not cheap. The cost to continue improving it is not cheap. Explain to me, please, why you expect a whole lot of something for absolutely nothing.
Completely different owners did that. We got rid of all that nonsense.
What's wrong with you?
Update: Our sister site, SourceForge, has weighed in.
Hey cool. The Digg of source code repositories still thinks it’s relevant.
They aren't relevant yet. This is the second chance. One of GitLab, Sourceforge, BitBucket or a completely new entrant is going to end up the winner. The question is, which one? Let's start the bidding war.
I believe the opening bid is GitLab with, "you can get a reasonable open source version of the bits of our web site you care about but without the statistics and other commercial features". Who's going to raise us a statistics module?
What's the business model, inquiring minds want to know?
How long until you need a microsoft account to use github?
How long until commercial customers also need to subscribe to Office 365?
Given other activity by Microsoft, I wonder if Software Freedom Conservancy needs to step in and protect the Git mark.
(https://www.git-scm.com/about/trademark section 2.3)
Thank you my friend. Such is the world.
Still over a million daily users, so we're gonna do right by them