Microsoft agreed to buy GitHub for $7.5 billion

Tinuku - Microsoft Corp. agreed to buy coding site GitHub Inc. for US$7.5 billion. The company said the deal would add to Microsoft's operating income including some costs in 2020 fiscal year and expect the acquisition to close by the end of 2018. Stocks rose less than 1% to $101.32 at 9.32 am in New York.

GitHub Inc. headquartered in San Francisco has become a code repository company popular with many software developers. This acquisition provides a way forward for GitHub who has been trying for nine months to find a new CEO and has not benefited from a popular service that allows coders to share and collaborate on their work.

Tinuku Microsoft agreed to buy GitHub for $7.5 billion

Microsoft is increasingly relying on open-source software also requires to add programming tools and bind with companies that have become an important part. GitHub will operate independently and Microsoft developer tools to continue to support programming languages. For Microsoft, the acquisition of GitHub is a return to the company's early roots and a sharp change from where it was was decades ago.

"Microsoft is the first developer company. Joining GitHub will strengthen our commitment to developer freedom, openness and innovation," said Microsoft CEO Satya Nadella.

GitHub is an important repository as well as a kind of social network for developers. Many large companies including Alphabet Inc. use to store their company code to collaborate. However, GitHub's losses have been significant where it lost US$66 million for three quarters in 2016. The company had revenues of US$98 million in nine months in 2016.