How much did Microsoft pay for GitHub?

Microsoft acquired GitHub for $7.5 billion in cash.

When did Microsoft acquire GitHub?

The acquisition was completed in 2018.

Why is the GitHub acquisition considered successful?

Because it gave Microsoft control over the world's largest developer community and turned GitHub into a key platform for AI tools like Copilot.

What role does GitHub play in Microsoft's AI strategy?

GitHub serves as a primary channel for deploying AI tools like GitHub Copilot, strengthening Microsoft's position in AI.

How Microsoft’s GitHub Acquisition Became a Decade-Defining Tech Deal

On a recent episode of *We Study Billionaires* (TIP813), analyst Trey Lockerbie called Microsoft's acquisition of GitHub one of the best tech acquisitions of the last decade. The $7.5 billion deal in 2018 turned GitHub into the world's most dominant coding platform and the most adopted AI coding tool, as well as Microsoft's primary channel to acquire developers.

On a recent episode of We Study Billionaires (TIP813), host Trey Lockerbie laid out a bull case for Microsoft (NASDAQ:MSFT)'s GitHub acquisition, calling it "one of the best tech acquisitions of the last decade." The $7.5 billion deal, completed in 2018, transformed GitHub into the world's most dominant coding platform and the most adopted AI coding tool, while also serving as Microsoft's primary channel to acquire developers.

Deal Details

Buyer: Microsoft (MSFT)
Target: GitHub
Value: $7.5 billion in cash
Year: 2018
Type: Full acquisition

Rationale

According to Lockerbie, the strategic goal was to dominate the developer community, which is critical for Microsoft's cloud (Azure) and development tools. GitHub hosts over 100 million developers, making it the ideal platform to promote AI tools like GitHub Copilot.

Regulatory Challenges

The deal faced no major regulatory hurdles, receiving approval from U.S. and EU authorities without stringent conditions.

Impact on Stock

Since the announcement, Microsoft's stock has risen significantly, boosted by cloud growth and GitHub's role as a developer hub. However, the acquisition's impact cannot be isolated from other factors.

What This Means for Investors

The deal highlights how smart acquisitions can create immense long-term value, especially when targeting platforms that dominate a vital tech community. For Microsoft investors, GitHub remains a key intangible asset strengthening the company's position in the AI revolution.