All Segments
Why Microsoft paid $7.5 billion for GitHub (Nat Friedman)
6 segments available
From my conversation with Nat Friedman, former CEO of GitHub. Watch the full video here: https://www.youtube.com/watch?v=qcvMjoJdck4 Or read the transcript here: https://www.dwarkeshpatel.com/p/nat-friedman Twitter: https://twitter.com/dwarkesh_sp Apple Podcasts: https://apple.co/3oBack9 Spotify: https://spoti.fi/3S5g2YK
Segments Timeline
The Spark of an Idea
Nat Friedman shares how he recognized GitHub's value during his early days at Microsoft. He recounts his conversation with Satya Nadella, where he proposed acquiring GitHub, highlighting the shift in IT purchasing decisions towards developers. This segment sets the stage for understanding the strategic importance of GitHub to Microsoft.
"You are at Microsoft. And at some point you realize that GitHub is very valuable and worth acquiring. How did you realize that and how did you convince Microsoft to purchase GitHub? I had started ..."
The Case for Acquisition
Friedman elaborates on the rationale behind acquiring GitHub, emphasizing the changing landscape of software development where developers now lead purchasing decisions. He argues that acquiring GitHub would allow Microsoft to reconnect with a new generation of developers who had no prior affinity for the company.
"that. And then about a year later, I wrote him an email, just a memo, I sort of said – I think it's time to do this. There was some noise that Google was sniffing around. I think that may have b..."
From Proposal to Deal
In this segment, Nat Friedman describes the process of turning his proposal into a reality. He recounts the meeting with Microsoft's leadership where they discussed the acquisition, leading to a swift agreement on the deal. This highlights the trust placed in him and the urgency of the acquisition.
"for all the other products that we do. And to my surprise, Satya replied in like six or seven minutes and said, I think this is very good thinking. Let's meet next week or so and talk about it. ..."
Facing Skepticism
Friedman addresses the skepticism surrounding Microsoft's acquisition of GitHub. He reflects on the initial distrust from the developer community and how he prioritized their concerns. This segment reveals the challenges he faced and his commitment to proving Microsoft’s dedication to developers.
"That's actually one of the things I want to ask you about. Often when something succeeds, we kind of think it was inevitable that it would succeed but at the time, I remember that there was a hu..."
Building Trust Through Action
Nat Friedman shares his strategy for gaining the trust of developers post-acquisition. He discusses the immediate actions taken to address community feedback and the importance of showing GitHub's commitment to developers. This proactive approach aimed to alleviate concerns and foster a positive relationship.
"run as an independent company. And then it said Nat Friedman is going to be CEO. And I had, I don't want to overstate or whatever, but I think a couple people were like – Oh. Nat comes from open..."
Learning and Adapting
In this final segment, Friedman reflects on the learning experiences gained from implementing quick changes at GitHub. He emphasizes the importance of feedback loops and how small, rapid improvements helped build trust and revealed insights about the company's operations. This highlights his adaptive leadership style.
"see that we cared about that immediately. And so I said, we're going to do this today and then we're going to do it every day for the next 100 days. It was cool because I think it created some rea..."