Knowing GitHub's position with developers, Microsoft has also leaned on the service quite a bit itself, too and some in the company already claim it is the biggest contributor to GitHub today. One competitor, GitLab, announced on Twitter that it was seeing ten times the normal number of repositories after the deal was first reported. The company has since grown to feature video game consoles (Xbox), consumer electronics, personal computers and cloud services (Microsoft Azure). One developer told Quartz he was concerned that Microsoft would use its ownership of the platform to monitor trends in software development in order to launch rival products, using largesse to preclude competition.
Bloomberg is reporting that Microsoft has chose to acquire GitHub for an unknown amount. For Microsoft, the acquisition will give them access to 27 million software developers and 80 million repositories of code.
In many ways, Microsoft's acquisition of GitHub is a move back to its roots as a company founded to help people make use of the MITS Altair, a consumer-oriented micro-computer kit. The platform hosts a growing network of developers in almost every country representing more than 1.5 million companies across healthcare, manufacturing, technology, financial services, retail and more.
On Friday, word of a possible acquisition of GitHub by Microsoft began circulating, based on report from Business Insider.
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Despite Microsoft's embrace of open-source, GitHub users are split on an acquisition. The site stores valuable code for thousands of developers and companies, and also can track major trends in the software industry.
Github, which was valued at $2 billion back in 2015, generates $200 million in subscription revenue including $110 million from enterprise customers, but is not now profitable, having lost $66 million over three quarters in 2016.
GitHub is an essential tool for coders. GitHub funder and former CEO Chris Wanstrath will become a Microsoft technical fellow and work on strategic software initiatives. Microsoft is now the biggest open source contributor on GitHub. If it's not making money, some bigger company will have to buy it to keep it afloat.