Bloomberg:

For Microsoft Corp., acquiring GitHub Inc. would be both a return to the company’s earliest roots and a sharp turnaround from where it was a decade ago.

The software maker has agreed to acquire GitHub, the code-repository company popular with many software developers, and could announce the deal as soon as Monday, according to people familiar with the matter.

Interesting that GitHub would choose this route over going public.

Lots of talk over the weekend over concerns with Microsoft having access to all the world’s source code. Doesn’t concern me. I password protect my private archives and trust GitHub to protect my privacy. I’ve got no reason to think that Microsoft will value that privacy any less.

This deal makes a ton of sense to me. I believe Microsoft have some of the most active and largest GitHub repositories on the planet. They know the value of GitHub, they probably have some solid ideas on tweaks to make it more useful for developers, and it makes good revenue as a business. Seems a smart move.

UPDATE: Here’s the official Microsoft announcement [H/T setteBIT].

Under the terms of the agreement, Microsoft will acquire GitHub for $7.5 billion in Microsoft stock. Subject to customary closing conditions and completion of regulatory review, the acquisition is expected to close by the end of the calendar year.