It is being rumoured that Microsoft is likely to acquire GitHub—a platform for software developers. It is apparent that the rumours might have some substance.
As per the reports of Business Insider, sources close to both GitHub and Microsoft have claimed that the two firms did come together for discussing a mutual marketing venture and now are planning a full attainment.
If the rumours are true, then the agreement would be somewhere in the range of $5 billion—a price which as per a person who knows the conversations informed CNBC was too pricey for Microsoft’s stake.
It is not clear though that whether these discussions are part of some serious consideration or just another idle conversation over other business.
GitHub back in the year 2015, got a valuation of two billion dollars approximately. Just a few years back indications, were that the GitHub was content in looking for funding on way to the final public offering.
When the CEO of GitHub—Chris Wanstrath stepped down, things kind of changed. The firm has yet to find a replacement, although it has considered many executives both from Google and Microsoft.
If one believes in conspiracy theory, then here is one that probably GitHub has not found a replacement of the CEO as it is thinking about permitting Microsoft to acquire it for an explicit sum of money.
If the acquisition actually takes place, then Microsoft would definitely have some advantages as well. Getting the ownership of GitHub, Microsoft would have direct access to hundreds and millions of developers working at millions of various firms, and easily motivated to use Microsoft’s cloud services and other products.
Additionally, GitHub is like the treasure box of AI talent, resources and data—its acquisition would give Microsoft an unlimited access.
Both Microsoft and GitHub have been contacted for their responses regarding confirmation of these reports, but neither of them has responded so far.