- REUTERS/Adnan Abidi
- Microsoft and GitHub have agreed to an acquisition, according to a Bloomberg report.
- The deal, which follows recent deal talks reported by Business Insider, could be announced as soon as Monday.
- It’s unclear what the price of the acquisition is, though GitHub was most recently valued at $2 billion.
The report, citing anonymous sources, does not provide the price Microsoft will pay to acquire GitHub, which was most recently valued at $2 billion on the private markets in 2015.
Deal talks between the two companies were first reported by Business Insider on Friday. The two companies have explored a potential deal over the years; at one point last year, a $5 billion deal for GitHub was floated, multiple people told Business Insider. But things didn’t get far or serious.
A combination of Microsoft and GitHub would make a lot of sense from a product and customer perspective, and it could provide stability for GitHub, which has found plans to monetize its popular products more challenging than expected and suffered a lot of turnover in its executive ranks.
The company has been searching for a permanent CEO for nine months, following the cofounder Chris Wanstrath’s decision to step down from the top job in August.
According to the Bloomberg report, GitHub lost $66 million over three quarters in 2016 and remains in the red. GitHub was attracted to a deal with Microsoft in part because of Microsoft CEO Satya Nadella, the report said.
Microsoft declined to comment. GitHub could not immediately be reached for comment.