After several weeks of rumors it is now confirmed that Microsoft corporation has acquired GitHub. Reported acquisition price was 5.7 billion USD in Microsoft stock. It is known that GitHub was valued at $2 billion in 2015. Nat Friedman, Microsoft vice president will become a new CEO of Github.
According to GitHub, community consists of 28 million developers. Code database stores 85 million repositories. As for now, Github is considered to be the largest source code database. GitHub is used by individual developers and large companies for hosting code, documentation and projects. Such giants as Apple, Google, Amazon are using GitHub services. Microsoft is said to be one of the biggest contributors to GitHub.
Despite its popularity among freelancers as well as large enterprises, GitHub has never become a profitable company. Main source of GitHub revenue are paid accounts, which provide features vital for enterprises. Price ranges from $7 per user per month to $21 per user per month. Open source projects use GitHub for free.
Despite the fact that Microsoft’s attitude towards open source projects has changed during last years, many open source developers are suspicious towards supposed Microsoft policy after GitHub acquisition. This is not a secret that when rumors about acquisition aroused, a lot of companies have started to look for alternatives to migrate from GitHub to one of its close competitors; GitLab or BitBucket. A lot of developers have already abandoned GitHub even before the deal has been officially closed. If such exodus continues it does not promise anything good to Microsoft and GitHub.