Skip to main content

GitHub flirted with Google before Microsoft acquisition

(Image credit: Microsoft)

Following Microsoft's recent acquisition of the developer site GitHub, people familiar with the deal have revealed that Google was also in talks to acquire the platform.

Talks between GitHub and Alphabet's Google went on for several weeks before the company decided to accept Microsoft's $7.5bn offer instead. Amazon, Atlassian and even China's Tencent have all previously expressed interest in acquiring GitHub in the past. 

Microsoft ended up paying 25 times revenue for GitHub which brings the site's annual revenue to around $300 million. Last year the site brought in $200m though it revealed in October that it was on track to earn an additional $100m a year solely from its enterprise products. 

Following its acquisition of GitHub, Microsoft now owns two of the top professional networks and this will help the company attract highly sought after tech talent.

GitHub's founder and former CEO Chris Wanstrath ended up choosing Microsoft over Google due to his relationship with its CEO Satya Nadella who has welcomed open-source software and programmer tools in an effort to restore growth and attract third-party developers to Windows. According to one person familiar with the deal, Nadella was able to win over Wanstrath with his vision of how GitHub would fit within Microsoft. 

GitHub, like the professional network LinkedIn before it, will be run independently for now though it will eventually become part of Microsoft's commercial cloud business alongside Office 365 and Dynamics 365.   

Image Credit: Microsoft

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.