1、Why microsoft buy Github？
The deal will strengthen the company’s relationship with developers and allow its tools to reach a broader audience within the world of open-source software, experts say. More than 28 million developers around the world use GitHub, Microsoft said, acknowledging the crucial role that developers have played in revolutionizing the modern economy.
“Today, every company is becoming a software company and developers are at the center of digital transformation,” Microsoft said in a news release.
GitHub will continue to remain an open platform that is independently operated, Microsoft said. The tech giant’s vice president of developer services, Nat Friedman, will become the new head of GitHub.
Cloud services will account for a staggering $186 billion this year — up more than 21 percent from last year — according to estimates by Gartner, an IT research firm. The industry is expected to continue to grow, crossing the $300 billion mark by 2021. GitHub, analysts say, could help Microsoft seize on that growth by drawing new developers to its cloud platform, Azure.
The deal also reinforces a core aspect of Microsoft’s identity. “Developers or software development has been essential to Microsoft’s business strategy for decades,” Jay Vleeschhouwer, the managing director of software research at Griffin Securities, said. “This is logically connected to Microsoft’s DNA around software development.”
Talks of the deal were first reported by Business Insider last week in a report that noted GitHub’s recent reluctance to sell itself to another company; GitHub was previously valued at $2 billion in 2015.
2、Why Microsoft’s acquisition of GitHub is a good thing for developers
Though it’s easy to find fault with the Microsoft of decades past, Microsoft in 2018 is more committed to the developer experience than ever before. It has already open-sourced a number of high profile project on GitHub (such as Visual Studio code) and is one of most active open source contributors. These moves strongly resonate with the way GitHub both works with and supports its partners. There’s therefore a natural synergy when it comes to Microsoft continuing to make investments into GitHub as a platform that further the experience for developers. It will be especially exciting if this move allows GitHub integrators to more deeply and natively integrate with other parts of the Microsoft DevOps stack, specifically at the infrastructure layer.
3、Microsoft Is Buying GitHub. Now It Has to Convince GitHub’s Users to Trust It.
Microsoft is acquiring GitHub, the largest code repository in the world, for $7.5 billion, the companies announced on Monday morning. GitHub, an online community for software developers to collaborate and share code, has never been profitable, though it was last valued at $2 billion in 2015. The company is host to a community of 28 million developers who maintain a total of 85 million code repositories. In the decade since it was founded, Github has become a cornerstone of the tech world, and one of the most important places on the internet for entities as large as Google and Microsoft and as small as high-school coding projects to document their work and collaborate.
Nadella, however, has been much friendlier with the open source community, and has even been working to move teams internally to develop on Linux, according to Bloomberg’s report on the GitHub acquisition. Microsoft also has been open sourcing more of its products, like PowerShell and Visual Studio, added the Linux command line to Windows 10, and became a member of the Linux Foundation, a nonprofit that helps to fund and provide resources for open-source software development, in 2016. Microsoft currently claims it’s the biggest contributor on Github to date. Github has also had its own spats with the developer community over the years, with developers complaining about things like a lack of transparency and communication with developers seeking support.
The open-source Git protocol, which GitHub is based on, is free. That free-to-use software was iterated on to create a tool that sold for more than $7 billion. Microsoft should be eager to support open-source developers if it hopes to foster the kind of innovation that allowed for GitHub to be possible in the first place—and to do that it’s going to have to tread very, very lightly
4、Buying GitHub takes Microsoft back to its roots
5、6 Things Microsoft Plans to Do With GitHub
（1）Microsoft’s GitHub Plans
“We are all-in with open source,” said Nadella, who talked about how Microsoft has become the most active organization on GitHub over the past few years with more than 2 million commits or updates made to projects. It’s the culmination of a slow but steady about-face on open source over the past several years in the Nadella era.
As for how GitHub will evolve as a Microsoft company, Nadella keyed in on three broad strategies: empower developers “at every stage of the development lifecycle,” accelerate GitHub use for enterprise developers, and use the platform to bring Microsoft’s own developer tools to a wider audience.
（2）Keeping GitHub Open
GitHub founder Chris Wanstrath said GitHub will remain an open platform for developers, no matter the programming language, platforms, operating systems, or devices they’re coding for. Wanstrath has been encouraged by acquisitions during the Nadella era, like LinkedIn and Minecraft (as opposed to past deals like Nokia or Skype) in letting acquired companies maintain their independence and identity.
Nat Friedman, who will become GitHub CEO when the deal closes, reiterated that GitHub is committed to being an open platform where anyone in the open community can upload code and contribute. What Wanstrath and Friedman said without saying it outright is that developers worried about Microsoft messing with GitHub’s ethos should chill out.
Microsoft CFO Amy Hood said the company expects to get US and EU regulatory approval and close the deal by the end of the year. At that time, Wanstrath (who had already announced his intention to step down as CEO) will become a technical fellow at Microsoft reporting to AI, cloud and developer chief Scott Guthrie. Friedman, who’s spent the past two years since the Xamarin acquisition running Microsoft’s developer services team, will take over as CEO also reporting to Guthrie.
Nadella’s new mantra for Microsoft is “intelligent cloud, intelligent edge” and the GitHub acquisition will play heavily into that. Friedman said the cloud is a core priority for developers, and that Microsoft is committed to plugging not only its own Azure cloud service into GitHub, but others such as Amazon Web Services (AWS) and Google Cloud Platform as well to help developers code for cloud, mobile, edge computing, and the Internet of Things (IoT).
Microsoft’s biggest plans are for the GitHub Marketplace. Friedman said Microsoft plans to leverage the marketplace to make all of Microsoft’s developer tools and services (many of which are open source) available to everyone in the developer community.
（6）Visual Studio Code
Finally, Friedman said Microsoft will integrate capabilities from its open-source Visual Studio Code developer environment directly into GitHub to “create a more seamless experience” for developers to collaborate and merge code, and have a more productive end-to-end experience in coding for whatever language, operating system, cloud, or platform that GitHub users are passionate about.
6、Microsoft acquiring GitHub is a good thing. Here’s why.
For lack of a better analogy, GitHub has been wandering in the desert for some time. It’s a company that’s immensely well capitalized, with somewhere in the range of $350M in venture capital money poured into it— but ultimately ended up stagnating as it grappled with the realities of business.
That wound up in the company shipping nothing meaningful for a number of years, which lead to many popular contributors writing an open letter to the company in 2016 about how poorly it had managed its own platform:
“However, many of us are frustrated. Those of us who run some of the most popular projects on GitHub feel completely ignored by you. We’ve gone through the only support channel that you have given us either to receive an empty response or even no response at all. We have no visibility into what has happened with our requests, or whether GitHub is working on them. Since our own work is usually done in the open and everyone has input into the process, it seems strange for us to be in the dark about one of our most important project dependencies.”
In response, GitHub tried to clean up its act, ultimately apologizing and acknowledging a lack of momentum or attention, and for making the service a ‘black box’ to build on top of.
Much of GitHub’s internal strife can be attributed to a reported toxic work environment, revealed in 2014, which founder Chris Wanstrath has spent the last few years cleaning up and making radical changes to the company.
Wanstrath, who has been acting CEO over the last few years refocused GitHub on its enterprise play and getting larger companies onboard to grow revenue. GitHub Enterprise is a hosted version of the platform that companies can run on premise, and having used it in the past I can say it’s actually pretty good — companies seem to like it too
The company got better at shipping features, and appeased developers to some extent, but wound up having no CEO for the last seven months and struggles to find a replacement to this day, which leads us to now.
（2）Microsoft + GitHub = ❤
Over the last three years there’s been a seismic shift at Microsoft in the way it both thinks about building software, and how it shares it with the world. Famously insular under previous CEO, Steve Ballmer, his replacement, Satya Nadella, took the company in the other direction: opening up entirely.
Microsoft’s acquisition of GitHub makes so much sense in this context, because it gives the startup a new home, and unlimited runway to keep building its tools for open source while getting the structure it needs to succeed. While I’m generally not a fan of platform consolidation like this, I simply don’t believe GitHub could do it in the long run on its own.
There’s a continuing shift away from computing platforms like Windows and a move toward APIs, the cloud, and developer tooling.
Microsoft sees this, and is in a position to benefit by fostering the community and building out amazing tooling for devs to use, for free, across platforms.
GitHub is naturally a fantastic play here, and Microsoft’s scale means that it might be able to offer basic features like private repositories to individuals for free, winning even more favor with the community.
Over the space of the last three years, Microsoft has gone to lengths to win over the developer community and show it’s truly invested, even before its GitHub acquisition became a discussion, and doesn’t plan to pull a bait and switch:
- It open-sourced all of the .NET framework on GitHub
- It build out rich, system-level Windows features to bring a rich Unix shell to the platform to make development easier
- It began and continues to maintain one of the best open-source code editors available for every platform out there
- It became the largest contributor to open source on GitHub.
- Microsoft’s whole Windows 10 platform is now built on open-source Progressive Web App technology
What started as a way to reach developers and grow its popularity with the community has wound up with Microsoft becoming one of the most important ushers of open source.
This work let me switch from Mac to Windows in 2017 after getting tired of Apple’s hostility toward developers and still use the tools that worked for me. This work is ushering in a new generation of developers who can work on any platform, using the best tools, regardless of if they’re on a PC, Mac or Linux box. Microsoft finds itself building best-in-class tools for everyone, not just some locked-in platform, and that’s killer.
It matters, because I can’t think of anyone else as a better fit for acquiring GitHub — Microsoft will be held to a high standard by the community, which has alternatives, and is unlikely to screw this up.
I don’t expect Microsoft will merge GitHub with its own tooling or cram in advertising, but instead to treat it as something that developers can invest in now knowing that Microsoft is backing it, and that it won’t go away.
It’s easy to make Clippy jokes and to rap on Microsoft’s past, which was bad, but hard work from hundreds of people across the company successfully reinvented an organization that rejected open source, instead fundamentally embracing it. There’s a great thread about this right here:
GitHub’s own announcement post outlines the shared vision well, and that both Microsoft and GitHub understand the responsibility that comes with the deal:
But more than that, their vision for the future closely matches our own. We both believe GitHub needs to remain an open platform for all developers. No matter your language, stack, platform, cloud, or license, GitHub will continue to be your home — the best place for software creation, collaboration, and discovery.
Microsoft’s own post from CEO Satya Nadella shows the same self-awareness:
“Most importantly, we recognize the responsibility we take on with this agreement,” explains Nadella. “We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform. We will always listen to developer feedback and invest in both fundamentals and new capabilities.”
I’m excited that it’s putting its money where its mouth is, and giving GitHub a foundation to grow for the long haul. I can’t think of a better home to foster it, and Microsoft’s work to help developers succeed will continue.
Once this acquisition wraps up and everyone has had their hot takes, I think the reality will be that this, long-term, is a great acquisition that secures GitHub’s future as a part of developer tooling for years to come.
I love the idea that Microsoft gives a shit enough to buy GitHub before it ends up dying, or worse, in the hands of a company that might actually do something nefarious with such a sprawling platform.
Even more, I’m excited by the idea that Microsoft might be able to revive GitHub as a platform and start bringing back meaningful innovation to our open source tooling — and still allows free choice. After all, Git is a decentralized file system, so if Microsoft screws this up, it’s actually trivial to move elsewhere.
7、Why Microsoft Is Willing to Pay So Much for GitHub
Microsoft’s $7.5 billion acquisition of GitHub is a perfect illustration of how value is ascribed differently in Silicon Valley than in the rest of the world. GitHub was acquired for close to 30x annual recurring revenue (an astronomical multiple). To put this in perspective, Microsoft acquired LinkedIn for $26 billion in 2016 (7.2x revenue), in what was considered one of the richest tech deals ever.
So why the difference? The answer lies in untangling a pervasive misunderstanding of how Silicon Valley works and where these astronomical values come from.
In Silicon Valley there are basically two ways of creating shareholder value: financial and strategic. Financial value is the stuff of business school and stock markets. It’s about multiples of revenue or earnings, sales growth, profit margins, and management theory. It’s about the ability to grow and prosper as an independent company.
When we talk about how the price of oil will affect Exxon’s stock price, we intuit a direct connection between what the company does (drill for oil), the price of oil, and how those two things are related to the stock price. Similarly, if you run a local dry cleaning business, the value of that business is based on how many customers you have, how much they spend, how much it costs to provide the service, and expectations of growth.
Strategic value, on the other hand, has little to do with any of those things and almost everything to do with how a company’s product and/or market position help or hinder another company’s (usually a bigger one’s) ability to be successful. Strategic value is realized not by a business’s ability to make money independently, but by its ability to generate (or in some cases protect) profit for someone else.
This distinction is at the heart of why a company with five people and no revenue can sell for a billion dollars, while a company with 500 people and $100 million in revenue can sell for a fraction of that amount. Although the most well-known Silicon Valley success stories, such as Apple, Facebook, and Google, are hugely profitable examples of financial value, the vast majority of startup success stories are not about building a company capable of an IPO and continued growth as a public company (an extraordinarily difficult feat); they’re about building something of value for someone else.
In other words, Microsoft is not paying $7.5 billion for GitHub for its ability to make money (its financial value). It’s paying for the access it gets to the legions of developers who use GitHub’s code repository products on a daily basis (the company’s strategic value) — so they can be guided into the Microsoft developer environment, where the real money is made.
Let’s look at a couple of well-known examples of strategic value. In 2006 Google acquired YouTube for an eye-popping (for the time) figure of $1.6 billion. YouTube’s business was wildly unprofitable, and the liability issues it faced for illegally posted videos seemed virtually limitless. Why take on this crazy business, much less pay a huge premium to do so? It wasn’t because of YouTube’s ability to make money in the future. It’s still unclear, 10 years later, whether YouTube is profitable. It was because YouTube had immense strategic value to Google (in this case, the ability to block a competitor from encroaching on its very profitable search business). Google’s acquisition of YouTube — again, a company that 10 years and billions of dollars of investment later still probably doesn’t make money — is now widely considered one of the best deals ever made.
Another example is Sun Microsystems’ billion-dollar acquisition of MySQL (where I was an executive at the time) in 2007. MySQL’s main product was a free, open-source database that was extremely easy to use and provided the back-end functionality for just about every website in existence. The company’s revenue was minimal, and its overall business model (its financial value) was speculative at best — and yet the company had multiple suitors willing to pay large sums to acquire it.
MySQL’s value was strategic, not financial. To the Oracles, IBMs, and Microsofts, its strategic value was related to protecting their profitable database businesses from a free product that did 80% (and growing) of what their expensive solutions did. While this was a good example of strategic value, it turned out it wasn’t even the most important. Sun at the time was in serious trouble, as its expensive hardware was quickly becoming undermined by much less expensive commodity Linux servers. Sun needed an answer to this threat, and it needed one fast. For Sun, acquiring MySQL would allow it to build certain Sun-specific advantages into the database that would make websites built on Sun/MySQL run 10 times faster than on competing solutions. With the very survival of Sun on the line, this was very strategic indeed (and a major factor in Oracle’s acquiring Sun six months later).
While Microsoft’s acquisition of GitHub is major news, it is just another in a long line of illustrations of a basic truth about the primary value of most successful high-tech startups. Namely, building a self-sustaining business is the exception, not the rule. Strategic, not financial, value is what drives most successful outcomes. If you reorient your thinking around this thesis, making sense of the crazy world of Silicon Valley will be much easier.
8、Microsoft confirms it’s acquiring GitHub for $7.5 billion
Microsoft is acquiring GitHub. After reports emerged that the software giant was in talks to acquire GitHub, Microsoft is making it official today. This is Microsoft CEO Satya Nadella’s second big acquisition, following the $26.2 billion acquisition of LinkedIn two years ago. GitHub was last valued at $2 billion back in 2015, and Microsoft is paying $7.5 billion in stock for the company in a deal that should close later this year.
GitHub is a large code repository that has become very popular with developers and companies hosting entire projects, documentation, and code. Apple, Amazon, Google, and many other big tech companies use GitHub. There are 85 million repositories hosted on GitHub, and 28 million developers contribute to them. GitHub will now be led by CEO Nat Friedman, the founder of Xamarin, who will report to Microsoft’s Cloud and AI chief Scott Guthrie. GitHub CEO and co-founder Chris Wanstrath will now become a technical fellow at Microsoft, also reporting into Guthrie.
It’s easy to imagine why Microsoft would want to acquire GitHub. Microsoft killed its own GitHub competitor, Codeplex, in December and is now the top contributor to GitHub, Microsoft now has more than 1,000 employees actively pushing code to GitHub repositories. Its popularity among developers could see Microsoft earn some much-needed trust and respect from developers. In bigger enterprises and slower moving businesses, the fact Microsoft has acquired GitHub will make it more trusted to use for projects and source control, simply because Microsoft is already trusted across many software and services by these companies. “We will accelerate enterprise developers’ use of GitHub, with our direct sales and partner channels and access to Microsoft’s global cloud infrastructure and services,” says Microsoft CEO Satya Nadella.
Trust and respect won’t be easy for Microsoft to win, though. Developers are already voicing their concerns about Microsoft’s past abuses, and the company’s botched acquisition of Skype and Nokia’s phone business. GitHub itself hasn’t scaled well and has faced its own issues over the years, and there are legitimate concerns that Microsoft will need to address. GitLab, a GitHub competitor, claims it has seen a 10x increase in the amount of developers moving their repositories over to its service, an early sign that there’s some developer unrest.
Microsoft won’t be able to address the general concern that important tools and internet services keep being consolidated into the hands of a few big tech companies. “When it comes to our commitment to open source, judge us by the actions we have taken in the recent past, our actions today, and in the future,” says Nadella, in an attempt to ease concerns around Microsoft’s acquisition.
Microsoft has struggled with developer love for years, and it’s a big part of the reasons Windows Phone failed and that its Universal Windows Apps platform hasn’t taken off. Microsoft has spent recent years improving Windows 10 so it’s a respectable development box, and tools like Visual Studio Code — which lets developers build and debug web and cloud applications — have soared in popularity with developers.
The question around this acquisition will be what Microsoft does with GitHub in the future. LinkedIn has largely remained separate, with some integrations into Microsoft’s Office software. Microsoft’s Minecraft acquisition has been managed equally well, and it’s likely that GitHub will need to stay as separate as possible to maintain developer trust. However, we could start to see even closer integration between Microsoft’s developer tools and the service. At Build last month, Microsoft continued its close work with GitHub by integrating the service into the company’s App Center for developers.
Microsoft clearly knows it needs to treat this acquisition with care. “Most importantly, we recognize the responsibility we take on with this agreement,” explains Nadella. “We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform. We will always listen to developer feedback and invest in both fundamentals and new capabilities.”
9、Microsoft’s GitHub acquisition celebrated by the Linux Foundation
Microsoft joined the Linux Foundation nearly two years ago, and more than 15 years after former CEO Steve Ballmer labeled Linux “a cancer.” The hostility between Microsoft and Linux is well and truly over, and developers and businesses are now reacting to the new era of Microsoft acquiring GitHub. “This is pretty good news for the world of Open Source and we should celebrate Microsoft’s smart move,” says Jim Zemlin, the executive director at the Linux Foundation.
10 years ago, Zemlin was calling for Microsoft to stop secretly attacking Linux by selling patents that targeted the operating system, and he also poked fun at Microsoft multiple times over the years. “I will own responsibility for some of that as I spent a good part of my career at the Linux Foundation poking fun at Microsoft (which, at times, prior management made way too easy),” explains Zemlin. “But times have changed and it’s time to recognize that we have all grown up — the industry, the open source community, even me.”
While the Linux Foundation is clearly backing Microsoft’s acquisition of GitHub, there has been a mixed reaction in the development community. Some developers were shocked at the news, while others have welcomed the move. Most seem to accept that we’ll need to wait and see what Microsoft does with GitHub before it’s judged on the acquisition.
Nat Friedman, Microsoft’s future GitHub CEO (once the deal closes) took to Reddit yesterday to answer questions on the company’s plans. Friedman co-founded and ran Xamarin, the mobile app development software Microsoft acquired two years ago, and is well respected in the open source community. Answering fears about Bing, Skype, or even Office integration ruining GitHub, Friedman is clear. “We are not buying GitHub to turn it into Microsoft; we are buying GitHub because we believe in the importance of developers, and in GitHub’s unique role in the developer community,” explains Friedman. “Our goal is to help GitHub be better at being GitHub, and if anything, to help Microsoft be a little more like GitHub.”
Friedman also addressed reports that rival GitLab has seen a 10x increase in the number of developers moving their repositories to the service since the GitHub acquisition news broke. “Developers are independent thinkers and will always have a healthy degree of skepticism, but I admit I was sad to see that some felt compelled to move their code. I take the responsibility of earning their trust seriously,” says Friedman. “That said, the GitHub team reports that the set of users who have migrated or closed their accounts is extremely small, and this is more than made up for by the surge of new signups and new interest in GitHub this week.”
Friedman also reassured developers that ads won’t start appearing on their repositories, and that Microsoft will “continue to develop and support both Atom and VS Code going forward.” The Reddit AMA seemed to help allay some developer’s fears. “As a developer I really distrust Microsoft and this acquisition scares the hell out of me,” says one developer in the Reddit thread. “That being said, this AMA has helped a decent bit.”
Microsoft to acquire GitHub for $7.5 billion
June 4, 2018 | Microsoft News Center
Acquisition will empower developers, accelerate GitHub’s growth and advance Microsoft services with new audiences
From left: Chris Wanstrath, Github CEO and co-founder; Satya Nadella, Microsoft CEO; and Nat Friedman, Microsoft corporate vice president, Developer Services
REDMOND, Wash. — June 4, 2018 — Microsoft Corp. on Monday announced it has reached an agreement to acquire GitHub, the world’s leading software development platform where more than 28 million developers learn, share and collaborate to create the future. Together, the two companies will empower developers to achieve more at every stage of the development lifecycle, accelerate enterprise use of GitHub, and bring Microsoft’s developer tools and services to new audiences.
“Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation,” said Satya Nadella, CEO, Microsoft. “We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world’s most pressing challenges.”
Under the terms of the agreement, Microsoft will acquire GitHub for $7.5 billion in Microsoft stock. Subject to customary closing conditions and completion of regulatory review, the acquisition is expected to close by the end of the calendar year.
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.
Microsoft Corporate Vice President Nat Friedman, founder of Xamarin and an open source veteran, will assume the role of GitHub CEO. GitHub’s current CEO, Chris Wanstrath, will become a Microsoft technical fellow, reporting to Executive Vice President Scott Guthrie, to work on strategic software initiatives.
“I’m extremely proud of what GitHub and our community have accomplished over the past decade, and I can’t wait to see what lies ahead. The future of software development is bright, and I’m thrilled to be joining forces with Microsoft to help make it a reality,” Wanstrath said. “Their focus on developers lines up perfectly with our own, and their scale, tools and global cloud will play a huge role in making GitHub even more valuable for developers everywhere.”
Today, every company is becoming a software company and developers are at the center of digital transformation; they drive business processes and functions across organizations from customer service and HR to marketing and IT. And the choices these developers make will increasingly determine value creation and growth across every industry. GitHub is home for modern developers and the world’s most popular destination for open source projects and software innovation. The platform hosts a growing network of developers in nearly every country representing more than 1.5 million companies across healthcare, manufacturing, technology, financial services, retail and more.
Upon closing, Microsoft expects GitHub’s financials to be reported as part of the Intelligent Cloud segment. Microsoft expects the acquisition will be accretive to operating income in fiscal year 2020 on a non-GAAP basis, and to have minimal dilution of less than 1 percent to earnings per share in fiscal years 2019 and 2020 on a non-GAAP basis, based on the expected close time frame. Non-GAAP excludes expected impact of purchase accounting adjustments, as well as integration and transaction-related expenses. An incremental share buyback, beyond Microsoft’s recent historical quarterly pace, is expected to offset stock consideration paid within six months after closing. Microsoft will use a portion of the remaining ~$30 billion of its current share repurchase authorization for the purchase.
Simpson Thacher & Bartlett LLP is acting as legal advisor to Microsoft. Morgan Stanley is acting as exclusive financial advisor to GitHub, while Fenwick & West LLP is acting as its legal advisor.
Media & Analyst Conference Call
Nadella, Friedman, Wanstrath and Microsoft Chief Financial Officer Amy Hood will host a joint conference call for media today, June 4, 2018, at 7 a.m. Pacific/10 a.m. Eastern to discuss this transaction. The call will be available to international callers at +1 (201) 689-8023 (no password required), to U.S. callers at (877) 407-0666 (no password required), or via webcast at https://edge.media-server.com/m6/p/eudfciq3 at that time. More information is available on http://news.microsoft.com.
Additional details will be available when the acquisition closes.
GitHub is the developer company. We make it easier for developers to be developers: to work together, to solve challenging problems, to create the world’s most important technologies. We foster a collaborative community that can come together — as individuals and in teams — to create the future of software and make a difference in the world.
Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
For more information, press only:
Microsoft Media Relations, WE Communications, (425) 638-7777,
Forward looking statements
This press release contains forward-looking statements, which are any predictions, projections or other statements about future events based on current expectations and assumptions that are subject to risks and uncertainties. The potential risks and uncertainties include, among others, that the expected financial and other benefits from the GitHub transaction may not be realized, including because of: the risk that the transaction may not be completed in a timely manner or at all; any restrictions or limitations imposed by regulatory authorities; the impact of the acquisition on GitHub’s developer community and enterprise customers; the extent to which we achieve anticipated financial and buyback targets; the impact of management and organizational changes on GitHub’s business; the impact on GitHub employees and our ability to retain key personnel; our effectiveness in integrating the GitHub platform and operations with Microsoft’s business; and our ability to realize our broader strategic and operating objectives. Actual results may differ materially from the forward-looking statements because of these and other risks and uncertainties of our business, which are described in our filings with the Securities and Exchange Commission (“SEC”), including our Forms 10-K and 10-Q. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Microsoft undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.
Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.
Microsoft + GitHub = Empowering Developers
Today, we announced an agreement to acquire GitHub, the world’s leading software development platform. I want to share what this acquisition will mean for our industry and for developers.
The era of the intelligent cloud and intelligent edge is upon us. Computing is becoming embedded in the world, with every part of our daily life and work and every aspect of our society and economy being transformed by digital technology.
Developers are the builders of this new era, writing the world’s code. And GitHub is their home.
As every industry – from precision medicine to precision agriculture, from personalized education to personalized banking – is being impacted by technology, the developer community will only grow in numbers and importance. Developer workflows will drive and influence business processes and functions across the organization – from marketing, sales and service, to IT and HR. And value creation and growth across every industry will increasingly be determined by the choices developers make.
In short, developers will be at the center of solving the world’s most pressing challenges. However, the real power comes when every developer can create together, collaborate, share code and build on each other’s work. In all walks of life, we see the power of communities, and this is true for software development and developers.
That is why we are so excited about today’s announcement. More than 28 million developers already collaborate on GitHub, and it is home to more than 85 million code repositories used by people in nearly every country. From the largest corporations to the smallest startups, GitHub is the destination for developers to learn, share and work together to create software. It’s a destination for Microsoft too. We are the most active organization on GitHub, with more than 2 million “commits,” or updates, made to projects.
Microsoft has been a developer-focused company from the very first product we created to the platforms and tools we offer today. Building technology so that others can build technology is core to our mission to empower every person and every organization on the planet to achieve more.
Chris Wanstrath (left), Github CEO and co-founder; Nat Friedman, Microsoft corporate vice president, Developer Services; Satya Nadella, Microsoft CEO; and Amy Hood, Microsoft Chief Financial Officer.
Microsoft is also committed to empowering communities, from the world’s professionals to IT professionals to gamers. We believe in the power of communities to achieve much more than what their members can do on their own. It’s our ability to work together that helps our dreams become reality, and we are dedicated to cultivating and growing communities to do just that.
And Microsoft is all-in on open source. We have been on a journey with open source, and today we are active in the open source ecosystem, we contribute to open source projects, and some of our most vibrant developer tools and frameworks are open source. When it comes to our commitment to open source, judge us by the actions we have taken in the recent past, our actions today, and in the future.
Given all of this, together with GitHub, we see three clear opportunities ahead.
First, we will empower developers at every stage of the development lifecycle – from ideation to collaboration to deployment to the cloud. Going forward, GitHub will remain an open platform, which any developer can plug into and extend. 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 on any cloud and any device.
Second, we will accelerate enterprise developers’ use of GitHub, with our direct sales and partner channels and access to Microsoft’s global cloud infrastructure and services.
Finally, we will bring Microsoft’s developer tools and services to new audiences.
Most importantly, we recognize the responsibility we take on with this agreement. We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform. We will always listen to developer feedback and invest in both fundamentals and new capabilities.
Once the acquisition closes later this year, GitHub will be led by CEO Nat Friedman, an open source veteran and founder of Xamarin, who will continue to report to Microsoft Cloud + AI Group Executive Vice President Scott Guthrie; GitHub CEO and Co-Founder Chris Wanstrath will be a technical fellow at Microsoft, also reporting to Scott. You can see how Chris, Nat and I envision the opportunity ahead in this public presentation.
Together we will continue to advance GitHub as a platform loved by developers and trusted by organizations.