Author Topic: Microsoft to buy GitHub in $7.5B all-stock deal (Read 28673 times)

wraith808 · « **on:** June 04, 2018, 09:32 AM »

Microsoft to buy GitHub in $7.5B all-stock deal

Microsoft Corp. struck a $7.5 billion all-stock deal to acquire software development platform GitHub.

The developer-focused GitHub will be part of Microsoft's Intelligent Cloud segment after the deal closes, which is expected to occur by the end of calendar-year 2018. The companies said June 4 they expect the deal will bring GitHub to more enterprise users and expand Microsoft's developer tools and services to new audiences. Microsoft Corporate Vice President Nat Friedman will head GitHub as CEO. GitHub's current CEO, Chris Wanstrath, will become a Microsoft technical fellow working on strategic software initiatives.

GitHub will continue to operate independently with an open platform available to all developers across operating systems, cloud systems and devices, the companies said.

Article on USA Today and Ars Technica

mouser · « **Reply #1 on:** June 04, 2018, 11:51 AM »

I don't understand how business works

wraith808 · « **Reply #2 on:** June 04, 2018, 12:21 PM »

I don't understand how business works
-mouser (June 04, 2018, 11:51 AM)

What do you mean?

mouser · « **Reply #3 on:** June 04, 2018, 01:07 PM »

I mean I just don't understand how their are profits to be made with these deals and acquisitions and businesses. Github is a fantastic service/site it just makes my head hurt to try to think how the valuations and business models work. And I must admit, it makes me a little queasy to even think about such matters, so I try not to.

wraith808 · « **Reply #4 on:** June 04, 2018, 01:19 PM »

I mean I just don't understand how their are profits to be made with these deals and acquisitions and businesses. Github is a fantastic service/site it just makes my head hurt to try to think how the valuations and business models work. And I must admit, it makes me a little queasy to even think about such matters, so I try not to.
-mouser (June 04, 2018, 01:07 PM)

Microsoft has been aggressively going after FOSS, for good or for ill is up to discussion. They've also tried to bake in support for Git into their VCS offerings, which have had mixed results/receptions. This deal is probably meant to capitalize on Github's technology and their reach- you'll notice that Codeplex was shut down a while ago, leaving that space seemingly open to Bitbucket and Github and a few other operators. This seems to be their first move in trying to get back into that space.

Tuxman · « **Reply #5 on:** June 04, 2018, 01:45 PM »

A monopolist buys another monopolist. Hilarity ensues.

wraith808 · « **Reply #6 on:** June 04, 2018, 01:52 PM »

How is Github a monopolist? That's a bit of a stretch...

Tuxman · « **Reply #7 on:** June 04, 2018, 01:56 PM »

I'm pretty sure that GitHub has - by 2018 - driven past Sourceforge in terms of commits (or even: repositories) per year. Which platform is able to beat its market share?

(Although I wonder why most people ignore the fact that they are mad about their preferred "DVCS" hoster being bought... Git's target audience does not seem to be the brightest of all.)

wraith808 · « **Reply #8 on:** June 04, 2018, 02:43 PM »

Bitbucket is pretty popular and is what I use instead... If they aren't using the pressure of so many using it in order to gain an advantage, I don't see why popular=monopoly

Tuxman · « **Reply #9 on:** June 04, 2018, 02:46 PM »

What is your definition of monopolies?

What would happen if GitHub would close in thirty minutes and why?

rgdot · « **Reply #10 on:** June 04, 2018, 04:27 PM »

Business system, whether you want to call it capitalism or not, is a joke. 100% agreed with mouser and 99% with Tuxman (

) 7.5 billion for GitHub is one example of a farcical money flow that is dominated by banks/stocks/fake cash.

wraith808 · « **Reply #11 on:** June 04, 2018, 06:30 PM »

What is your definition of monopolies?

What would happen if GitHub would close in thirty minutes and why?
-Tuxman (June 04, 2018, 02:46 PM)

Many projects would lose their source that they maintain online. But not all projects, but only those that chose to go with Github.

As far as definitions:

exclusive control of a particular market that is marked by the power to control prices and exclude competition and that especially is developed willfully rather than as the result of superior products or skill

Is it exclusive? Do you have to use it? Are they controlling prices in the market? I think the answer to all of these is no.

Fair is fair. What is your definition of monopoly?

Tuxman · « **Reply #12 on:** June 04, 2018, 06:57 PM »

My definition of monopoly is a large company (which GitHub undoubtedly is) which has a large enough market share in its specific niche (which GitHub undoubtedly has) that using a different product has a severe impact on your own success.

wraith808 · « **Reply #13 on:** June 04, 2018, 10:19 PM »

My definition of monopoly is a large company (which GitHub undoubtedly is) which has a large enough market share in its specific niche (which GitHub undoubtedly has) that using a different product has a severe impact on your own success.
-Tuxman (June 04, 2018, 06:57 PM)

That's not a definition of a monopoly. That's a definition of a market leader, sure. But that's only the definition of a success. As long as they don't leverage it to impede others' success, they are not a monopoly. Innovate better, use varying business practices, do whatever you need to operate in order to succeed (though I don't like the litigatory practices that some use) in the market, but don't blame it on the fact that people like the other product better.

Deozaan · « **Reply #14 on:** June 05, 2018, 12:02 AM »

While I agree more with wraith808's definition, I do have to opine about the fact that for almost all intents and purposes, it's almost as if Github were the only hosted DVCS that exists in the world. So many other services and platforms that support a DVCS seem to only support git, and only support Github.

Tuxman · « **Reply #15 on:** June 05, 2018, 12:57 AM »

Also, many projects and even programming languages (talking to you, Go!) natively integrate GitHub as their package repository. That means that not only the official source would be gone for a while - large parts of the software world wouldn't even compile anymore. That's a bad sign.

wraith808 · « **Reply #16 on:** June 05, 2018, 12:34 PM »

Also, many projects and even programming languages (talking to you, Go!) natively integrate GitHub as their package repository. That means that not only the official source would be gone for a while - large parts of the software world wouldn't even compile anymore. That's a bad sign.
-Tuxman (June 05, 2018, 12:57 AM)

But, the largest factor to me- is that Github's fault? Did they put pressure on as the largest DVCS repository in the space? If they didn't, that's a bad choice on the part of the community rather than the company. I use Bitbucket for projects whenever I can- Atlassian has a more transparent profit stream, and a more transparent reason for offering the service. I try to never use a product that I don't pay for, and if I do, I try to use something backed by someone that I know has a profit stream that I understand. Github is not very transparent, and I don't even know where a 7.5B valuation (other than for the platform implementation) comes from. That, IMO, is more problematic than who owns it.

Edvard · « **Reply #17 on:** June 05, 2018, 09:07 PM »

Microsoft Corp. on Monday announced it has reached an agreement to acquire GitHub, the world’s leading software development platform where more than 28 million developers learn, share and collaborate to create the future.

https://www.codeproj...6777&_z=12372277

from CodeProject News

Edvard · « **Reply #18 on:** June 05, 2018, 09:27 PM »

Aw crud, I just posted about this in the Living Room. Shoulda searched first. Crap.

Edvard · « **Reply #19 on:** June 05, 2018, 09:28 PM »

Never mind, Wraith808 already posted about this yesterday, and I didn't catch it:
https://www.donation...ex.php?topic=45702.0

Deozaan · « **Reply #20 on:** June 06, 2018, 02:42 AM »

It seems there is an ongoing "mass exodus" from GitHub to GitLab:

https://twitter.com/.../1004143715844124673

Even so, it's something like less than 1% of all GitHub repos.

Tuxman · « **Reply #21 on:** June 06, 2018, 02:47 AM »

Gitlab runs on Microsoft Azure.
https://twitter.com/.../1004087778760646656

Deozaan · « **Reply #22 on:** June 06, 2018, 02:49 AM »

It moved, or is moving, to Google Cloud:

Why and how GitLab abandoned Microsoft Azure for Google Cloud

Edit: But yeah, I agree with an opinion I read elsewhere (maybe that Twitter thread) saying it seems like a tempest in a teacup, which will be forgotten in two weeks.

Tuxman · « **Reply #23 on:** June 06, 2018, 02:53 AM »

Which is so much better.

Jibz · « **Reply #24 on:** June 06, 2018, 09:13 AM »

Just read an article about why GitHub is worth that kind of money to Microsoft here:

https://www.bloomber...-billion-undo-button

I agree that this seems like a smart move from Microsoft, assuming they do not manage to screw it up, in which case they might have an even harder time winning back developers.

I don't personally see any reason to move projects around at the moment, but if I had private repositories on GitHub with the source for something that might compete with something Microsoft does, who knows.