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Microsoft In A Deal Worth $7.5 Billion To Buy A Software Development Platform

Microsoft Corporate Vice President, will become GitHub CEO.

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An advertisement is played on a set of large screens at the Microsoft office in Cambridge, Massachusetts, U.S, VOA
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Microsoft on Monday said it will buy software development platform GitHub, in a deal worth $7.5 billion which will blend two opposite corporate cultures.

The tech giant, based in Washington state, is a heavyweight in terms of software whose source codes are not openly available or modifiable, exactly the counter of GitHub’s philosophy.

Created in 2008, GitHub allows developers to cooperatively manage software and has more than 28 million users around the world.

“Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation,” Microsoft chief executive Satya Nadella said in a statement.

“We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world’s most pressing challenges.”

The veteran tech firm said it “will acquire GitHub for $7.5 billion in Microsoft stock.”

Logo of Github
Logo of Github, Pixabay

Subject to customary closing conditions and regulatory review, the deal is expected to be finalized by the end of the year, Microsoft said in a statement on its website.

“GitHub will retain its developer-first ethos and will operate independently to provide an open platform for all developers in all industries,” Microsoft said.

“Developers will continue to be able to use the programing languages, tools and operating systems of their choice for their projects — and will still be able to deploy their code to any operating system, any cloud and any device.”

Microsoft has begun moving towards an open source software culture, proposing for example Linux on its Windows Azure cloud service. It also started a training program with Linux and others.

Microsoft Corporate Vice President Nat Friedman, founder of Xamarin and an open source veteran, will become GitHub CEO.

GitHub’s current chief executive, Chris Wanstrath, will move to Microsoft as a technical fellow to work on strategic software initiatives.

Writing on The GitHub Blog, Wanstrath said that he “could have never imagined” news of such a merger, when open source and business were considered as different “as oil and water” a decade ago.

But he said Microsoft and GitHub have already collaborated on projects, and “their vision for the future closely matches our own.”

Logo of Microsoft outside it's office
Logo of Microsoft outside it’s office, Pixabay

He said “both believe that software development needs to become easier, more accessible, more intelligent, and more open, so more people can become developers and existing developers can spend more time focusing on the unique problems they’re trying to solve.”

In April, Microsoft reported that its earnings rose 35 percent to $7.4 billion in the fiscal third quarter, with revenue up 16 percent to $26.8 billion.

Earnings were lifted by gains in its core cloud computing operations for business.

Also read: Microsofts android launcher track kids location app usage

Microsoft said the GitHub acquisition is expected to have a negative impact on 2019 earnings but positive beginning in 2020. (VOA)

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Microsoft Co-Founder Paul Allen Will Be Remembered

Allen was also owner of the National Football League's Seattle Seahawks, and the Portland Trail Blazers professional basketball team.

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Paul Allen
Microsoft co-founder Paul Allen at a news conference (from archives). VOA

Microsoft co-founder Paul Allen, who visualized the indispensability of the personal computer more than 40 years ago, died Monday at 65.

Allen’s family said he died in Seattle of non-Hodgkin’s lymphoma, a form of cancer he had been battling off and on since 2009.

After persuading high school friend Bill Gates to drop out of Harvard in 1975, the two teamed up to develop a rudimentary software that hobbyists used to operate home-built computers.

Microsoft, paul allen
An advertisement is played on a set of large screens at the Microsoft office in Cambridge, Massachusetts, U.S, VOA

“I expect the personal computer to become the kind of thing that people carry with them, a companion that takes notes, does accounting, gives reminders, handles a thousand personal tasks,” Allen wrote in Personal Computing magazine in 1977.

Allen and Gates called their company Microsoft and spent the next several years developing the software that revolutionized the world.

Allen and Gates split in 1983, but Allen kept his share of Microsoft, making him a billionaire.

Gates issued a statement on Allen’s death late Monday.

Paul Allen
Paul Allen in 2003

“I am heartbroken by the passing of one of my oldest and dearest friends, Paul Allen,” he said.

According to Forbes magazine, Allen was worth nearly $22 billion at the time of his death, making him the world’s 44th wealthiest person.

Allen was also owner of the National Football League’s Seattle Seahawks, and the Portland Trail Blazers professional basketball team.

Also Read: Microsoft Cannot Recover Files Deleted By Windows 10 Update

He also used his wealth to refurbish a crumbling neighborhood of his native Seattle, turning it into a headquarters for Amazon. (VOA)