Microsoft is in talks to acquire the software developer platform GitHub, according to a Business Insider report.
A source familiar with both the companies said that Microsoft and GitHub came together a couple of times in the past few weeks to discus a joint marketing venture worth $35 million and are currently pondering upon a full acquisition.
The source revealed that GitHub’s price for a complete acquisition was much higher than what Microsoft wanted to pay. GitHub received a valuation of $2 million in its last funding round in 2015 however the price tag for an acquisition is somewhere near $5 billion which is too high for Microsoft to pay, said the source.
It is still unclear whether these discussions are serious ones or just idle chatters.
GitHub’s tools are being used by hundreds and millions of software developers who use it to store codes, discuss issues and keep a record of updates. The company is said to have more than 23 million users in more than 1.5 million organizations. Last year, the privately held company was on its way to book $200 million in subscription revenue including a $100 million from enterprises that use its products.
Microsoft had reportedly tried to acquire GitHub in 2016 too but GitHub denies those reports. The acquisition would definitely result very beneficial for Microsoft as GitHub would give Microsoft an access to all the developers that it needs for working on developing applications for its various platforms including the Azure Cloud. Data from GitHub can also help Microsoft with the improvement in its artificial intelligence products.
The acquisition news comes when GitHub is trying to find a replacement for its CEO Chris Wanstrath who stepped down from his position last fall. GitHub has been considering executives from both Google and Microsoft. Microsoft exec Nat Friedman and Google’s senior VP of ads and fcommerce Sridhar Ramaswamy are being considered for the post.