The 10-year-old GitHub, which is based in San Fransisco, is a platform for 27 million developers and hosts 80 million repositories of code.
It's free to use GitHub for open-source projects, but some developers and businesses pay a monthly fee to access private code repositories and other services. The all-stock deal is expected to close by the end of the year, subject to regulatory approval in the USA and EU.
All should be done by "the end of the calendar year", and Microsoft is delighted to further build on its "developer-focused" foundation to "empower every developer to build, innovate and solve the world's most pressing challenges". It also reflects the increasing importance of cloud computing software and the development of internet-connected devices, Lane said.More news: US defence chief decries Chinese 'intimidation'
He said the investment stemmed from the firm's theory that developers would drive the new economy, and "GitHub was at the epicenter of that transformation". It's worth noting that Microsoft does use GitHub, just like Google and other tech companies.
Microsoft said the GitHub acquisition is expected to have a negative impact on 2019 earnings but positive beginning in 2020.
The deal will reportedly be announced tomorrow (Monday, June 4).
Git is far and away the most popular version control system, clouds are mostly computers, and Microsoft is the most active organization on GitHub in the world.
Meanwhile, GitHub CEO and co-founder Chris Wanstrath will be a technical fellow at Microsoft. "Nat has a ton of experience with software and the open source software community, having co-founded Xamarin and worked on numerous open source projects over the years, and is the ideal person to help GitHub grow and continue to make life better for developers".
Of course, being so essential to many developers' workflows means that any slight change to GitHub (let alone drastic ones) could alienate much of the platform's user base.