MSFT acquired GitHub for $7.5B in stock


#1

#2

What’s the value of github?


#3

valuation or what?


#4

Why is GitHub valuable to Msft? It’s reported as a professional social network for software engineers, but how can that justify the 7.6B price? Software engineer network must be a small niche network.


#5

I can answer that.

Starting around 2008, microsoft started becoming a platform for developers. It started adopting opensource, it started evangelizing and supporting opensource. It created codeplex, but then decided to shut it down because developers were mostly prefering github for opensource.

Over time, microsoft decided to also incorporate these technologies (github etc) into visual studio. Microsoft has tools that was “equivalent” to git and stuff, but people chose git over sourcesafe etc over time. So microsoft obeyed.

As enterprises moved into github, microsoft can now double dip. Both as an opensource supporting play, and as a enterprise repository play. It’s both a PR piece, and also a directional piece in microsoft’s change. Github’s name alone makes it worth a lot.

I suspect, however, that some people will start transitioning to GitLab instead.


#6

Microsoft always overpaid for their acquisitions for no apparent purpose. They have too much money. They spent it extravagantly on acquisitions. Most of the time it didn’t pay off.

It’s kind of like Google’s moonshot projects.


#7

Microsoft >> Google. The company is reborn!! Bullish.


#8

I mean… Elons tesla was a moonshot.

Waymo will make us a lot of money, when it pans out.

Others maybe not.


#9

You are right! Moonshots can turn into an incredible success story if the shot in fact hit the moon :slight_smile:


#10

For a start that LIDAR needs to be reduced in size by 10x :slight_smile:


#11

The spinning KFC bucket makes you hungry?


#12

Why is that?


#13

Probably not great for Coefficient of Drag… + Looks hideous… :slight_smile:


#14

Google is not known for their aesthetics. Their products always look hideous. But they work fine.


#15

I agree… but for a car… it’s different & looks matter… ask ANY car lover…

Btw Google agrees I think … check out their phones, their latest Pixel phones vs earliest phones…


#16

Oh, not a big deal. over time i think it’ll get reduced in size or size will be changed to reduce drag. But for autonomous driving, that’s probably least of their car.


#17

Recalled MSFT overpaid for Hotmail (can’t remember its old name) and some dumb hosting sites.
GitHub is THE standard for open source software development. Everybody use it.
But is it worth $7.5B?


#18

No.


#20

GitHub’s rev is not too shabby:

As a whole, the start-up said in August that it had built up a run rate of more than $200 million based on its July revenue. That run rate is up more than 50 percent year over year, and that growth rate has been steady for the past few years, GitHub’s chief strategy officer, Julio Avalos, told CNBC in an interview.

Today 52 percent of Fortune 50 companies use GitHub’s Enterprise business tier, which costs $21 per user per month. Altogether, GitHub has more 23.1 million users in 200 countries and 1.5 million organizations. For context, IDC estimated in 2013 that the world had 18.5 million developers.

Even there GitHub may be worth at most 2 to 3B. Not 7.5.


#21

for you, it’s not.