MarketLine Blog

Microsoft’s acquisition of GitHub: A crucial step for the company’s new strategy

Microsoft’s interest in the open-source community reveals its importance; given the company’s strategic change is some years now towards the embracing of open-source software development. Accordingly, the acquisition of GitHub does not sound surprising, at least not as much as the $7.5bn paid for that acquisition. However, the acquisition of Microsoft is of pure strategic value; the extraordinary $7.5bn paid that equals 3000% of GitHub’s estimated annual turnover means that the financial value of the company itself is not the reason for making such an acquisition. Indeed, Microsoft paid that amount to gain access to the largest community of developers which can create enormous value for Microsoft’s ecosystem. The acquisition of GitHub is a pass in the new era of open-source software development in which Microsoft has seen a great opportunity. Specifically, Microsoft intends to create a crucial synergy of the GitHub platform with its own products and its cloud services, on which there is a huge growth potential to capitalize on.

Posted in Innovation, Technology.

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