Microsoft filings revealed it paid $1.3 billion cash as part of GitHub deal
|From left: GitHub co-founder Chris Wanstrath, Microsoft CEO Satya Nadella, and current GitHub CEO Nat Friedman
Early June, Microsoft reached a deal to acquire code repository GitHub for $7.5 billion in what was then described as an all-stock deal. A recent Microsoft filing shows otherwise revealing that the Redmond based software giant made $1.3 billion in cash payments as part of the deal.
The company stated the $7.5 billion figure was “inclusive of cash payments of $1.3 billion in respect of vested GitHub equity awards and an indemnity escrow” and also noted the deal closed on the 25th of October.
Acquiring GitHub was part of Microsoft’s broader clinch of open source software and efforts to attract more software developers for its platform. The company is now led by Microsoft executive Nat Friedman who took a position at the company after its acquisition of Xamarin, a mobile app development platform for a reported price range of $400 million – $500 million.
Prior to its acquisition, GitHub had raised $350 million from the likes of Sequoia Capital, Andreessen Horowitz, IVP (Institutional Venture Partners), SV Angel and Thrive Capital.