MSFT acquired GitHub for $7.5B in stock


#22

Wow, $200M revenue run rate = $7.5B valuation. That’s a smooth 37.5x revenue valuation. The issue I see is if they try to generate meaningful revenue then someone will launch a competing service and steal all their users.

Just look at the user numbers. 18.5M in 2013 to 23.1M today. That’s less than 5% a year user growth. That shows they’ve already saturated the market. Is the number of software engineers going to dramatically increase? Are they going to suddenly monetize users are a far higher rate to justify the valuation?

I wonder how many of the employees will bail, because they won’t want to work for MSFT.


#23

microsoft is buying a brand.
github successfully killed sourceforge.
this is their enterprise play, hooks into visual studio wil be built, azure will work on it etc.

It’s not just how much money they will make. it’s their platform play.


#24

I was wondering about that too. Still many SWEs don’t like MSFT?


#25

Azure is considered to be the money spinner for MSFT going forward. People write code in Github -> You put in a service that compiles the code and manages the releases and you deploy it in Azure. One click from code to deployment. Many third-party software tries to do this now.


#26

Totally agree. GitHub is a beautiful extension of LinkedIn. Where else can you find a more insightful resume for the most talented engineers?
I try to hate MS for the longest time, but now it seems to be positioned as a respectable underdog…


#27

Linked in is a bunch of people sharing their work day :slight_smile:


#28

I agree GitHub is a great buy for Microsoft. I am just not sure about the price. Obviously Microsoft knows more about its own plans and the financials of github. Yes it has obvious synergy with LinkedIn, azure and its dev tool chains.


#29

Here’s a comparison with a recent IPO star Docusign. Its market cap is 8.3B so not far from github’s 7.5B. Its FY17 rev is 519M and should be able to easily grow 30% to 674m in FY18. That’s over 3x of what github is expected to bring in.

Is github’s brand and moat so formidable?


#30

Andreessen Horowitz is pocketing a huge win in the $7.5 billion GitHub acquisition - Recode


#31

Trying to screw AWS?


#32

It may not worth $7.5B to others but could be worth that much to MSFT. Denying competitors is worth something.


#33

Was whatsapp worth 13B$? @manch? :slight_smile:


#34

WhatsApp was worthless while the shitty founders were around pulling its legs. Now that they both are gone WA is worth more than its price. Bullish.


#35

You are bs ing :l


#36

WA founders are piece of shit. Good riddance.

In response to the pressure from above to make money, Messrs. Koum and [co-founder Brian] Acton proposed several ideas to bring in more revenue. One, known as “re-engagement messaging,” would let advertisers contact only users who had already been their customers. Last year, WhatsApp said it would charge companies for some future features that connect them with customers over the app.

None of the proposals were as lucrative as Facebook’s ad-based model. “Well, that doesn’t scale,” Ms. Sandberg told the WhatsApp executives of their proposals, according to a person familiar with the matter. Ms. Sandberg wanted the WhatsApp leadership to pursue advertising alongside other revenue models, another person familiar with her thinking said.


#37

I should take your opinion on investing, but not take yoyr opinion on other people, looks like.

This is their product. Grew it to millions of users. They think from that pov.


#38

Strategic differences don’t imply they are piece of shit.
manch’s focus is $$$$$$ anyone who don’t go for $$$$$$ is a piece of shit.
So if you want to make $$$$$$, should listen to him.
Yes, you are correct to say this,


#39

Obviously you didn’t listen to him though. He sold all Aapl and moved on. You’re still holding your bag of apples.


#40

for dividends, duh?


#41

Manch didn’t care about any dividends when he sold his.