However, three years later, that valuation may have ballooned, and the acquisition could set Microsoft back as much as $5 billion, according to an estimate from CNBC.
Github, which was valued at $2 billion back in 2015, generates $200 million in subscription revenue including $110 million from enterprise customers, but is not now profitable, having lost $66 million over three quarters in 2016. Are you going to keep using GitHub and move over to GitLab?
The change may have occurred when CEO of GitHub, Chris Wanstrath stepped down in August 2017. Terms of the agreement weren't known on Sunday. Microsoft is now the biggest open source contributor on GitHub. It also helps Microsoft, which is increasingly relying on open-source software, to add programming tools and tie up with a company that has become a key part of the way Microsoft writes its own software.
Despite all those users, Github was not making money, and it probably wasn't long for the world as a independent company.
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GitHub may soon fall under the wide umbrella of Microsoft. Many tech companies and individual developers use the platform to store and share certain code, and collaborate.
So by that measure, this deal will be the real test of Microsoft's newfound love for open-source software and multiplatform development.
The companies have reportedly had several discussions about partnership in recent years, but those close to GitHub's decision told media outlets that talks have grown increasingly more serious. Eyeing big tech companies with skepticism is definitely prudent, but millions of companies already trust Microsoft with their email, financial spreadsheets, and proprietary code running on Azure servers. GitHub has also not responded to media inquiries to the potential acquisition.