Microsoft is acquiring GitHub for $7.5 billion

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GitHub has become an essential way to connect with developers as the company's business model has evolved and allowed it to open itself to open-source code. Microsoft might pay upwards of $5 billion for the company.

Later today (or whenever the reported deal is made official), Microsoft will have plenty of questions to answer for concerned developers and programmers who rely on the platform to host their code.

Microsoft (msft) is expected to announce later today that it has acquired GitHub, a code repository.

Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation.

Since Satya Nadella took over as CEO at Microsoft, the OS maker has been refocusing its efforts on strengthening its cloud-based services and having a larger presence on the open-source market.

Bloomberg said GitHub has been searching for a new chief executive officer for the past nine months and is now unprofitable.

As per a report from Business Insider, the Redmond-based tech giant has been in discussions with the software developer platform in the last several weeks with hopes of making a rather major acquisition. Many engineers use the site to store their code, keep tabs on updates, and even use it as a discussion forum.

While GitHub is home to more than just open source software, if such a migration came to pass, it would be a very bad look both for GitHub and Microsoft.

Others wondered about Microsoft's renewed power in software, particularly since Microsoft also owns LinkedIn, potentially giving it a huge leg up in the field of technical recruiting. "Developers will continue to be able to use the programming languages, tools and operating systems of their choice for their projects", it added.

After a couple of days of rumors and speculations, Microsoft has officially announced that it's acquiring GitHub for $7.5 billion. It also gives Microsoft the opportunity to make all the code run as a trial demo, test system or developer system on Azure.

Meanwhile, GitHub, which celebrated its 10th birthday recently, lost $66m in nine months during 2016 and has been searching for a new CEO for the past nine months. Last August, the company said it wanted a replacement for CEO Chris Wanstrath - one of GitHub's founders. Microsoft's deep pockets can, at least, ensure that GitHub stays active for a long time.