As per the recent reports by Business Insider, Microsoft has been planning to acquire the $2 Billion worth platform for software development named GitHub. The discussions amidst the two companies involved the consideration of a possibility for partnership in terms of marketing that is said to be valued close to $35 million. However, it isn’t clear if the companies are still in talks. According to the information acquired by a person with knowledge of these discussions, Microsoft planned for a complete acquisition of the software platform but the price of the same was much more than the estimated pay offered by the company.
During the last funding session held at 2015, the platform was valued at a price tag of $2 billion. However, the new price for GitHub could be valued around $5 billion or even more. The tools provided by GitHub have become an essential requirement for the software developers that need to it for storage of code, tracking latest updates as well as discussion of latest issues.
GitHub flaunts a huge market base with about 23 million users amidst 1.5 million companies. It was also on the way to acquire $200 million from the subscription-based revenue. This included $110 million just from the companies that use its enterprise based products.
Before the recent hype, Microsoft tried to buy off GitHub in the year 2016. However, these reports were denied by GitHub. This new partnership shall allow Microsoft to develop another point to connect with various developers required by the company to build numerous applications for its variety of platforms that includes the famous Azure cloud. The data derived from GitHub might also be used for improvement for products based on AI (Artificial Intelligence).
The talks for this acquisition came into surface given the fact that GitHub has been struggling to find a replacement after the founder and CEO Chris Wanstrath stepped down from his position last year. As per reports, Microsoft based executive named Nat Friedman might take over the position at GitHub as the new CEO. Friedman used to operate the developer tools based start-up named Xamarin that was acquired by Microsoft in the year 2016. Apart from that, reports suggest that the senior Vice President of Advertising and Commerce, Sridhar Ramaswamy could be a potential candidate to take the position as well.
However, Microsoft has denied to provide any type of comment regarding the reports of obtaining GitHub and a similar scenario was seen at GitHub. Both the companies are keeping it down low until a confirmed decision is made.