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Microsoft buys GitHub for $7.5 billion

After several days of rumors to the effect, Microsoft today revealed it had reached an agreement to acquire popular code-sharing site GitHub, for $7.5 billion.

With the acquisition, Microsoft plans to accelerate enterprise use of the platform, which has held repos for open source software projects of all kinds, including software sponsored by Microsoft rivals such as Apple and Oracle. Although it has not been profitable, GitHub has generated revenues through private repos and an on-premises version called GitHub Enterprise. Microsoft intends to use GitHub to promote use of its own developer tools and services to new audiences.

GitHub will operate independently and remain an “open” platform, according to Microsoft. Developers can continue to use programming languages, tools, and operating systems of their choice. More than 28 million developers operate on GitHub, which is home to 85 million code repositories.

Microsoft said it is the most-active organization on GitHub, with more than 2 million commits made to projects. The company stressed its commitment to being stewards of the GitHub community and would retain a developer-first ethos.

The acquisition will be based on Microsoft stock and is expected to close by the end of the year. Microsoft executive Nat Friedman, founder of tools builder Xamarin, will take on the role of GitHub CEO. Meanwhile, GitHub current CEO, Chris Wanstrath, will become a Microsoft technical fellow.

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