Microsoft has reportedly set its sights on the popular code storage service GitHub.
A report from Business Insider says that it has learned from sources at both GitHub and Microsoft that the two companies initially met to discuss a joint marketing venture and are now considering a full merger.
If the rumors are true, the deal would be worth around $5 billion, a price that one source told CNBC is too high for Microsoft.
It's unclear whether these talks are part of a serious consideration, have stalled, or are still ongoing.
GitHub was valued at around $2 billion in 2015, and a few years ago was seeking funding to go public. Things changed, however, when GitHub CEO Chris Wanstrath stepped down last fall. The company has yet to find a replacement, although it is considering executives from Microsoft and Google.
If the rumors turn out to be true and Microsoft does acquire it, both companies will benefit. Owning Git Hub will give Microsoft direct access to hundreds of millions of developers, working on millions of businesses and projects. These developers can more easily use Microsoft's cloud services and other products.
In addition, Git Hub is a goldmine of data and AI resources. Acquiring the service could conceivably give Microsoft access.
As for the benefits that GitHub will reap, they are much more measurable: $5 billion is not a small amount.
_________________________
Microsoft: acquiring the GitHub code repository?
📧
Subscribe to the SecNews Newsletter
