Tech giant Microsoft is set to acquire software development platform GitHub for more than $5 billion and a deal could be announced later on Monday, according to multiple media reports.
GitHub serves a code repository for developers across the world and has participants from IT majors including Microsoft, Google and Amazon. It lets users host and review code, manage projects, and build software alongside millions of other developers.
Should a deal go through, Microsoft would gain access to GitHub's 80 million repositories of code and 27 million software developers on the platform.
According to a Bloomberg report, GitHub chose to sell instead of going public because it was impressed with Microsoft chief executive Satya Nadella and his vision of open source coding, which is a decentralised and collaborative effort.
According to a CNBC report, the acquisition will follow a planned joint marketing partnership valued around $35 million.
GitHub was last valued at $2 billion in 2015, as per a Bloomberg report. It raked in a significant loss of around $66 million over three quarters in 2016, while racking up revenue of $98 million for those nine months.
Since last year, GitHub has been looking for a CEO to replace Chris Wanstranth, one of its co-founders. Julios Avalos, the chief business officer of the company, has been taking care of the day-to-day activities in the absence of a chief executive.
Business Insider reported that talks have taken place over the years but gathered steam only in recent weeks.
Microsoft and GitHub have both declined to comment on the deal so far.
A fortnight ago, the Nadella-led company announced the acquisition of US-based conversational artificial intelligence (AI) startup, Semantic Machines, amid efforts to improve its virtual assistant Cortana. https://techcircle.vccircle.