On Monday, 4 June 2018 at 20:00:45 UTC, Maksim Fomin wrote:
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...
MS aims for cloud market, and github is a strategic asset there, as long as it helps the cloud business, it doesn't matter that github in isolation is not profitable. After MS takes over webdev and monopolizes the cloud market they can pull effective management again, but it will be a long way to go, but webdev being webdev can make it a little shorter. They were already kicked out of mobile market, it was reasonably unexpected, but it doesn't look like they plan to fall for it again.
