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Microsoft seals deal with GitHub
Microsoft is buying GitHub, a massive software-development platform with 24 million users, for $7.5 billion.
The deal is expected to pass regulatory review and close by the end of 2018. GitHub’s most recent private valuation, as of 2015, put the software company at about $2 billion, after raising $350 million in venture capital since its founding in 2008.
The $7.5 billion being offered to GitHub is to be paid in Microsoft stock. As Business Insider reported last week, the two companies have talked about a potential acquisition for some time – at one point, a $5 billion price tag was floated.
As the result of the acquisition, Microsoft’s vice president Nat Friedman is taking over as CEO of GitHub, a role left unfilled since the company’s cofounder Chris Wanstrath announced 10 months ago that he would step down.
New war on Wall Street
A proposal to shake up stock trading in the US has been tearing apart Wall Street, and now the infighting has reached a fever pitch.
The Securities and Exchange Commission in March proposed a pilot program that would examine the impact of rebates, a type of incentive some stock exchanges pay out to traders to lure them to their venues. The pilot would eliminate rebates in certain cases to analyze how the practice affects the markets.
Legacy stock exchanges, including the New York Stock Exchange and the Nasdaq, are up in arms over the proposal, with the NYSE saying in a letter to the SEC last week that it would put venues like theirs in economic jeopardy. On the other side of the fight are pension funds and the upstart exchange IEX, which argue the pilot will provide regulators with the necessary information to make a judgment on rebates.
Deutsche loses another big trader
Deutsche Bank has lost another senior fixed-income executive as staff turnover continues to plague the German bank.
Raj Bhattacharyya, the head of the emerging-market debt and foreign-exchange business in the Americas, is leaving the firm after 17 years, according to an internal memo seen by Business Insider.
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