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Microsoft Is Considering Buying Code Giant GitHub To Enhance Advantages In Developer Tools

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GitHub is essential for developers who are looking to store, share and discuss code. On the other hand, it’s not really that well positioned when it’s struggling to replace its outgoing CEO.

It seems that Microsoft might not let this opportunity slip away. The Google executive Sridhar Ramaswamy was at one point under consideration for the GitHub CEO job, a source told Business Insider.

Microsoft is considering purchasing GitHub

Microsoft had some discussion in the past few weeks regarding the acquisition of software developer platform GitHub, Business Insider reports.

An insider who is familiar with the discussions between the companies told CNBC that “they had been considering a joint marketing partnership valued around $35 million,” and that those discussions led to a possible investment or outright acquisition.

It’s not very clear at the moment whether the talks are still ongoing, but the source also reported that GitHub’s price for a full acquisition was more than Microsoft was currently willing to pay.

“GitHub was last valued at $2 billion in its last funding round 2015, but the price tag for an acquisition could be $5 billion or more, based on a price that was floated last year,” CNBC notes.

The talks come while GitHub is struggling to replace CEO and founder Chris Wanstrath, who stepped down ten months ago. Business Insider reported that Microsoft exec Nat Friedman may take that CEO role.

Neither GitHub nor Microsoft commented

Neither of the companies addressed the rumors. There are lots of reasons for which Microsoft may want to purchase GitHub. Its data could be helpful for improving Microsoft’s AI businesses.

The tech giant could also get a significant developer resource that could be vital to boosting adoption of virtually everything that it makes, starting with Windows 10 and finishing with its Azure cloud platform.