All Segments
Why Microsoft paid $7.5 billion for GitHub (Nat Friedman)
7 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 and proposed its acquisition to CEO Satya Nadella. He highlights the shift in IT purchasing decisions towards developers and the strategic importance of acquiring GitHub to connect with this new generation of software creators.
"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 ..."
Convincing Microsoft
Friedman details the process of convincing Microsoft to acquire GitHub, including his memo to Satya Nadella outlining the strategic benefits. He emphasizes the need for Microsoft to regain developer trust and how GitHub's acquisition could facilitate that connection, ultimately leading to a swift agreement on the deal.
"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..."
Empowerment and Trust
Reflecting on his experience, Nat Friedman discusses the empowerment he felt being entrusted with the GitHub acquisition project. He likens it to being appointed mayor of his hometown, expressing his commitment to serve the developer community and ensure GitHub's success post-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, particularly the concerns voiced by the developer community. He shares his personal commitment to addressing these doubts and the importance of maintaining GitHub's identity as an independent entity focused on 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..."
The Announcement and Initial Reactions
After the acquisition leak, Nat Friedman recounts the challenging environment leading up to the official announcement. He describes the negative online reactions and how the announcement aimed to reassure developers by emphasizing GitHub's independence and his role as CEO.
"was very important to me not to. So that was the first thing, just that I cared. And the second thing is that the deal leaked. It was going to be announced on a Monday and it leaked on a Friday. ..."
Immediate Actions as CEO
On his first day as CEO, Friedman shares his strategy to quickly address developer concerns by implementing immediate changes based on community feedback. He emphasizes the importance of demonstrating GitHub's commitment to developers and fostering a culture of rapid shipping and responsiveness.
"then my first day as CEO after we got the deal closed, at 9 AM the first day, I was in this room and we got on zoom and all the heads of engineering and product. I think maybe they were expectin..."
Building Trust Through Action
Friedman reflects on the positive outcomes of his approach to quickly implement changes at GitHub. He discusses the feedback loops created by shipping small updates, which helped build trust with developers and provided valuable insights into the company's operations and challenges.
"going to do it every day for the next 100 days. It was cool because I think it created some really good feedback loops, at least for me. One was, you ship things and then people are like – Oh, hey..."