On Monday, 4 June 2018 at 19:26:23 UTC, Joakim wrote:
On Monday, 4 June 2018 at 19:06:52 UTC, Maksim Fomin wrote:
Unlikely, you don't spend $7.5 billion on a company because you
want to send a message that you're a good dev tools company,
then neglect it.
You have no idea about how big corporations' management spends
money.
As with Nokia and Skype - I don't know whether it was initially a
plan to destroy products or management was just silly.
I suggest you look at their online slides linked from the
Nadella blog post to see their stated plan, such as integrating
github into VS Code more:
http://aka.ms/ms06042018
and likely vastly overpaid for an unprofitable company in the
first place
:) this is exactly how such deals are done - paying $7.5 bl. for
nonprofitable company.
Unfortunately, their books are unavailable because they are
private company, but scarce information in the web suggests that
in most of their years they have losses.
Just as rough estimate: to support $7.5 bl valuation Microsoft
must turn -$30 ml. net loss company into business generating
around $750 ml. for many years. There is no way to get these
money from the market. Alternatively, the project can have payoff
if something is broken and Microsoft cash flows increase by $750
ml. This is more likely...
but they emphasize that they intend to keep github open and
independent.
They can claim anything which suits best their interests right
now. Or, as alternative, github can be broken in a such way, that
their promises on surface are kept. Business is badly compatible
with opensource by design.
