Microsoft's $7.5 Billion GitHub Acquisition Has Officially Closed

Microsoft is now the official owner of the largest repository of open-source lawmaking in the world.

In a company announcement and blog post from new GitHub CEO Nat Friedman, the company reaffirmed a sticking point that led to some initial backlash from the code-sharing and collaboration service'due south 31 million developers: GitHub volition proceed to operate independently as both a business and a platform.

The $7.5 billion deal deal received Eu regulatory approving last calendar week. Appear in June, the GitHub acquisition is some other major milestone in Microsoft'south broader strategy of establishing deject services and enterprise software equally its major revenue pillars going forward. The company announced strong Q1 earnings earlier this calendar week that puts information technology on track to become the tertiary company to eclipse a trillion dollars in market cap, and mayhap pass Amazon in the process.

The biggest growth drivers are the company's Microsoft Azure cloud services revenue combined with Office 365 subscriptions, though Microsoft as well reported strong gains in Surface and Xbox acquirement.

"Redmond is all the same in the early innings of benefiting from a transformational secular deject shift in this two-horse race with Amazon (AWS) as more enterprises around the earth caput down the cloud path," said Daniel Ives, Managing Manager of Equity Research at Wedbush Securities. "With FY19 numbers showing healthy double-digit growth, a margin expansion story still taking hold, and underlying cloud growth showing no signs of slowing downwards, we continue to believe Microsoft is firing on all cylinders equally Nadella continues to transform the company into a deject behemoth."

Microsoft has a lot of plans for how GitHub factors into all of this, but some of its first priorities are to "accelerate enterprise utilise of GitHub, and bring Microsoft's developer tools and services to new audiences." While GitHub volition operate independelty, Friedman (formerly CEO of cross-platform developer software company Xamarin, which Microsoft acquired in 2022) will written report to Microsoft Cloud and AI caput Scott Guthrie.

As with Microsoft'due south conquering of LinkedIn in 2022, we should begin to come across the first fruits of this deal in 2022 in the course of product integrations. When the bargain was announced, Microsoft tipped plans like making its programmer tools and services bachelor in the GitHub Market, integrating GitHub with Azure and other cloud services, and building capabilties from its open-source Visual Studio Code developer environment directly into GitHub.

Nigh Rob Marvin

Rob Marvin is PCMag's Associate Features Editor. He writes features, news, and tendency stories on all manner of emerging technologies. Beats include: startups, business and venture capital, blockchain and cryptocurrencies, AI, augmented and virtual reality, IoT and automation, legal cannabis tech, social media, streaming, security, mobile commerce, M&A, and entertainment. Rob was previously Assistant Editor and Acquaintance Editor in PCMag's Business section. Prior to that, he served as an editor at SD Times. He graduated from Syracuse University's Southward.I. Newhouse School of Public Communications. You lot can also find his concern and tech coverage on Entrepreneur and Trick Business. Rob is also an unabashed nerd who does occasional amusement writing for …

Source: https://sea.pcmag.com/microsoft-office-365-business-premium/30133/microsofts-75-billion-github-acquisition-has-officially-closed

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