Microsoft's purchase of Github reportedly a done deal

MIcrosoft buy GitHub

Image Roland Moriz Flickr

According to the new report, Microsoft may have to shell out in the region of US$5 billion to add GitHub to its growing list of mergers and acquisitions.

GitHub is an online code repository which was formally founded in 2008 by Chris Wanstrath and Tom Preston-Werner.

Murmurs about the acquisition bubbled up late last week as the CEO-less GitHub was reportedly in talks with Microsoft about a sale.

A purchase price wasn't revealed, but GitHub was last valued at $2 billion in 2015.

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Both Microsoft and GitHub have refrained from making a statement on the story, suggesting they don't comment on rumours and speculation.

Now even the big companies of our day, including Microsoft, use Github as an important tool in their software development processes. One closely watched aspect of this deal will be whether fierce competitors like Amazon Web Services and Google continue to store code on a Microsoft-owned property.

On the other hand, GitHub is one of the most used tools by the developers all over the world. It's also a social network of sorts for developers. GitHub is now without a CEO, following last year's departure of Chris Wanstrath, who was GitHub's founder and previously held the position. 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.

A combination of Microsoft and GitHub would make a lot of sense from a product and customer perspective, and it could provide stability for GitHub, which has found plans to monetize its popular products more challenging than expected and suffered a lot of turnover in its executive ranks. While those talks may have died down, the possible inclusion of Ramaswamy to the company's board may curb Microsoft's prospects for a buyout.

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