When Did Microsoft Buy GitHub
Microsoft completed the acquisition of GitHub in October 2018 for $7.5 billion in an all-cash deal, making it one of the largest software platform transactions in history according to Forbes. The acquisition was announced on June 4, 2018, and closed on October 26, 2018, after receiving regulatory approvals in multiple jurisdictions including the European Union and the United States per SEC filings.
The deal was structured entirely as an all-cash transaction at $75 per share, representing a 44 percent premium over GitHub's closing stock price on the day before the announcement as reported by Forbes. Microsoft CEO Satya Nadella framed the acquisition as a strategic move to empower developers and accelerate the use of open source software across enterprise and cloud environments.
Why Microsoft Bought GitHub
Strategic Developer Ecosystem Access
GitHub hosts over 100 million developers and more than 420 million repositories, making it the world's largest source code hosting platform and a central hub for open source collaboration per GitHub's own Octoverse report. By acquiring GitHub, Microsoft gained direct access to this massive developer community, strengthening its position in cloud services, enterprise software, and developer tooling.
Cloud and AI Growth Acceleration
The acquisition aligned with Microsoft's broader strategy to integrate GitHub deeply with Azure, its cloud computing platform, and to leverage AI-powered developer tools such as GitHub Copilot as disclosed in SEC filings. Microsoft's Azure cloud revenue grew significantly after the acquisition, partly driven by GitHub Enterprise customers adopting Azure for CI/CD pipelines, container orchestration, and AI model deployment.
Impact and Current Status of the Acquisition
GitHub's Independence and Product Evolution
Post-acquisition, Microsoft maintained GitHub's independent operating structure, allowing it to function as a separate subsidiary with its own leadership, branding, and product roadmap per GitHub's official blog. GitHub expanded its product portfolio to include GitHub Copilot, GitHub Actions, GitHub Enterprise Server, and GitHub Codespaces, while retaining its open source ethos and community governance model.
Financial and Market Implications
The acquisition has been widely regarded as financially successful, with GitHub contributing to Microsoft's developer tools and cloud revenue growth