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Microsoft CEO Satya Nadella on stage at Build 2017 in Seattle.
Microsoft

Microsoft is paying $7.5 billion for GitHub, a software platform where 28 million developers learn, share and collaborate. 

“Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation,” Microsoft CEO Satya Nadella said in a release announcing the deal. “We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world’s most pressing challenges.”

Microsoft says the transaction, which must pass the usual regulatory scrutiny, will close by the end of 2018.

The "open-source" code repository that Microsoft is acquiring has been popular with developers, not all of whom are apparently pleased that GitHub is being snatched up by the tech giant.

As rumors of the potential acquisition swirled, GitLab, an open-source competitor tweeted that it has seen a ten-fold increase in the "normal daily amount of repositories."

Microsoft itself has been active on GitHub, with more than 2 million "commits" or updates to projects on the platform. 

Nat Friedman, a Microsoft corporate vice president and founder of a company called Xamarin, will become the GitHub CEO replacing current chieft Chris Wanstrath. Wanstrath will remain at Microsoft as a technical fellow working on software strategy. 

For its part, Microsoft said in its release that "GitHub will retain its developer-first ethos and will operate independently to provide an open platform for all developers in all industries."

Analyst Jack Gold of J. Gold Associates says that despite the lofty price, this a “great buy” for Microsoft. “This acquisition puts Microsoft ahead in the web hosting market against fierce competitors AWS and Google, and creates an incentive for many more app developers to host on Azure, especially in the commercial space where Microsoft is currently less competitive than in the enterprise space.

Microsoft stock was up 0.90% in early trading Monday.

Email: ebaig@usatoday.com; Follow USA TODAY Personal Tech Columnist @edbaig on Twitter