In a filing on last Thursday, connected to the acquisition of code hosting GitHub, a cash payment of $1.3 billion has been made by Microsoft. Regarding the recent cash payment transaction Microsoft has yet to come up with clear statement as in June it acquired the GitHub against all-stock deal of $7.5 billion. But now for the cash payment of $1.3 billion included in total amount of the deal, Microsoft is filing it was paid “in respect of vested GitHub equity awards and an indemnity escrow.”
GitHub has been open source software for developers to host, share and keep an eye on code changes while writing application. And Microsoft acquired Github not only to catch largest source code repository but also to grab software developers shifted mostly towards its rivals Google and Amazon in recent years.
In last December Microsoft had given up its open source platform CodePlex, which was at that time rival to GitHub, by admitting its dominance as open source sharing platform and to facilitate CodePlex users, Microsoft even partnered with GitHub, in migrating their user codes.
Microsoft not only heavily contributed to open source products but also for its own open source products creation, has been using GitHub. Microsoft for its open source contribution has also efficiently used GitHub. For its in house projects including Windows kernel, Microsft invested heavily in Git Ecosystem along with extensive use of it.
With a value of $2 billion by investors and GitHub have nearly 27 million users. Fastest growing projects of deep learning and machine learning on its site has been noted by GitHub. It has been called smart move to acquire GitHub by Microsoft struggling hard towards AI by playing huge. Also GitHub will also be another contribution to expand Microsoft’s presence in Silicon Valley.
After the acquisition, as part of the deal, GitHub will remain enjoying its independent role as an open source platform.