Microsoft confirms it will acquire code-sharing site GitHub [Updated]

The developer platform GitHub, which is widely used for storing, sharing, and collaborating on code, will soon be a Microsoft company.

Microsoft confirmed Monday that it will acquire GitHub for $7.5 billion. A Bloomberg report on Sunday said the San Francisco-based hosting service would announce its deal with Microsoft imminently, according to "people familiar with the matter." Now, it's official.

Murmurs about the acquisition bubbled up late last week as the CEO-less GitHub was reportedly in talks with Microsoft about a sale. Its co-founder, Tom Preston-Werner, resigned in 2014 after harassment allegations surfaced.

Bloomberg reported that the company was swayed to sell instead of going public because it was impressed with Microsoft CEO Satya Nadella.

GitHub raised $250 million in 2015 and was last valued at $2 billion. Microsoft, a public company worth $760 billion, has a long list of acquisitions, including networking site LinkedIn in 2016 and Skype in 2011.

Now GitHub will be added to the list, giving Microsoft an edge in open-source development.

UPDATE: June 4, 2018, 1:15 p.m. EDT: This article has been updated Microsoft's official announcement of the acquisition.