Slate: Why Would Microsoft Pay $7.5 Billion for GitHub?

  • Why would Microsoft, a software company that has achieved global dominance through writing proprietary software, spend $7.5 billion on GitHub, a company dedicated to building up a world-beating repository of open-source alternatives? Are they buying it to kill it, a bit like the National Enquirer allegedly did with those tales of Donald Trump’s infidelities?

    Not at all: Microsoft is the ideal home for GitHub, and the hefty price tag is merely a sign of how seriously Microsoft CEO Satya Nadella takes GitHub’s mission. Companies can be worth a lot more to a strategic acquirer than they would be on the open market, and GitHub is a prime example.

    Continue at https://slate.com/business/2018/06/microsoft-github-deal-why-the-usd7-5-billion-purchase-price-makes-sense.html