The announcement had been widely expected, with nearly every technology news site of note reporting it on Monday. The deal is expected to close by the end of 2018.
A statement from Microsoft said GitHub had something in the region of 28 million developers working on 80 million repositories. Microsoft has been one of the bigger code contributors to the site.
Should I buy #GitHub 2018 Home Edition or GitHub 2018 Professional?— PB (@bangsabassi) June 3, 2018
The reaction from open-source developers to the news has not exactly been salutary as can be seen from the embedded tweets and comments on Linux Weekly News.
“We recognise 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.”
Microsoft Corporate vice-president Nat Friedman, founder of Xamarin and an open source veteran, will assume the role of GitHub chief executive. GitHub’s current chief executive, Chris Wanstrath, will become a Microsoft technical fellow, reporting to executive vice-president Scott Guthrie, to work on strategic software initiatives.
After the deal is closed, Microsoft said it expected 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% to earnings per share in fiscal years 2019 and 2020 on a non-GAAP basis, based on the expected close time frame," the company said.
One obvious way to show trustworthiness, Microsoft: open source the GitHub code. People don't use GH because it has secret magic but because everyone's already there; opening it wouldn't change that. And then we can all help fix the little annoyances that drive us mad every day. https://t.co/VgMYi5XxHn— Stuart Langridge (@sil) 3 June 2018
"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 approximately US$30 billion of its current share repurchase authorisation for the purchase."
Photo: courtesy Microsoft