A Developer-First World

Microsoft buying GitHub makes no sense. At least when you look at the traditional measures of valuation that is. For example, take Microsoft’s acquisition of LinkedIn for $26.2 billion at 7.2X revenues. And GitHub? They were acquired for 30x revenues.

For the sake of comparison, here are some other big tech acquisitions:

  • Dell buys EMC for $67 billion
  • Facebook buys WhatsApp for $19 billion
  • Google buys Motorola Mobility for $12.5 billion
  • Oracle buys PeopleSoft for $10.3 billion
  • Oracle buys Sun Microsystems for $7.4 billion
  • Microsoft buys Nokia for $7.2 billion

So what would make Microsoft puts $7.5 billion into something that is a mere developer tool by a company that was rapidly losing money and had no CEO for nearly a year?

For Microsoft, this is a strategic play to own more developer mindshare. Of the estimated 18.5 million professional developers (IDC), over one-quarter are .NET developers. Microsoft is already heavily invested on GitHub as a platform for .NET and their open source projects.

As Ethan Kurzweil of Bessemer Venture Partners states:

“Monday’s news cements developers’ preeminent position in the tech industry and underscores Microsoft’s steadfast commitment to becoming the company for empowering this community. It’s a return to Microsoft’s roots as a “developers as customers” company.”

“Today developers may be the most important decision maker in the technology space with more control over spending than ever before.”

What does it mean to “burn a zero-day”?

Good discussion around zero-day exploits…

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