For Microsoft Corp., acquiring GitHub Inc would be both a return to the company's earliest roots and a sharp turnaround from where it was a decade ago.
The software maker has agreed to acquire GitHub, the code-repository company, with many software developers, and could announce the deal as well as the matter.
Microsoft's origin story lies in the market for software-development tools. Decades before the former chief executive officer Steve Ballmer jumped up and down on the stage, cheering for “developers, developers, developers,” Bill Gates and Paul Allen co-founded the company to give hobbyists a way to program a new micro-computer kit, the MITS Altair.
But even as Ballmer celebrated in the early 2000s he and his executive team were highly critical of the kind of open-source program built in GitHub today. Open-source software allows developers to tinker with, improve upon and share code. Satya Nadella, Microsoft is supporting many flavors of Linux.
Redmond, Washington-based Microsoft is now one of the biggest contributors to GitHub, and as Nadella moves on the road. with the broader developer community.
GitHub preferred selling the company to going public and chose Microsoft, Nadella, who was asked for discussing private information. Terms of the agreement were not known on Sunday. GitHub was last valued at US $ 2bil (RM7.95bil) in 2015.
Frank Shaw, a spokesman for Microsoft, declined to comment. GitHub did not return an email seeking comment on a potential agreement.
San Francisco-based GitHub is an essential tool for coders. Many corporations, including Microsoft and Alphabet Inc's, use it to store their corporate code and to collaborate. It's also a social network of sorts for developers. Still, GitHub's losses have been significant – it lost US $ 66mil (RM262.54mil) over three quarters in 2016 – and it has been hunted for a new CEO for nine months. The company had a revenue of US $ 98mil (RM389.84mil) in the nine months of 2016.
In August, GitHub announced that it was looking for a CEO to replace Chris Wanstrath, one of the company's co-founders. In the interim, GitHub's chief business officer, Julio Avalos, joined the company's board of directors and took over much of the day-to-day leadership of the company.
Microsoft has talked to GitHub, which hosts 27 million software developers working on 80 million repositories of code, on and off for a few years. Recently they began talks about a partnership, according to another person, familiar with the situation.
Business Insider first reported talks between the companies on June 1. – Bloomberg