It belongs to the cloud now

Microsoft buys Github for $7.5B. The Hustle Tues, Jun 5 Brought to you by Recurly… cut the churn, keep the subscriber. Microsoft pursues developers with $7.5B GitHub buy, but they're Gitting out fast Microsoft announced yesterday that it had acquired GitHub, the open source digital repository for developers, for $7.5B in stock. Microsoft is buying the site to sell its cloud services and developer tools to GitHub's active community -- which benefits GitHub investors, but raises red flags for users concerned about the platform's independence. The future is wide open (source) MS's acquisition of the world's premiere open source network is a reversal of past policy at 'Soft. In 2001, their CEO famously called Linux (an open source code that threatened Microsoft's many patents) "a cancer." But since then, MS has accepted open source inevitability -- and now it's more focused on attracting developers to its Azure cloud. Last year, the company closed its GitHub competitor, CodePlex, and now it hopes to attract GitHub's developers, who have collectively used the platform to store 80m software projects. Microsoft takeovers haven't been perfect in the past Acquiring mature companies for their user bases is a classic MS strategy (used to buy Skype, Nokia and LinkedIn), but one that often results in the slow death of the original companies. And, while the big 'Softie hopes to win over GitHub's 28m contributing developers to dominate the cloud services industry (expected to hit $300B by 2021), many of them have already started to jump ship.  GitLab, GitHub's most direct competitor, saw a 10x increase in daily use 2 days ago when whispers of the alleged acquisition first surfaced. Well, at least it's a win for GitHub investors GitHub has only raised 2 rounds of financing (for a total of $350m) since it was founded in 2008. But their most recent round of funding in 2015 only valued the company at $2B -- meaning the $7.5B sale was a huge investment multiplier for VCs with money riding on the 'Hub. Take, for example, Andreessen Horowitz, which made over $1B on the deal -- a 10x return on the $100m check they wrote GitHub back in 2012. Check, please   A startup that builds esports infrastructure for high schools scores $15m in funding Esports "infrastructure" platform, PlayVS, has closed a $15m Series A funding round to develop school-sponsored gaming programs, "clicking off" its inaugural season in October, with organized esports in over 18 states with approximately 5m students across 5k schools. The round was led by New Enterprise Associates, with participation from  Dollar Shave Club founder Michael Dubin, Twitch cofounder Kevin Lin, Nas, the San Francisco 49ers, and existing investor Science. What exactly does esports infrastructure entail?  PlayVS, which rocketed out of the LA-based Science startup studio in April, is an all-in-one online portal for esports players that develops organizational software to formalize high school gaming competitions. With the PlayVS platform, matches are set and scheduled, stats are tracked and collected, and wins and losses are auto-recorded to prevent cheating -- basically everything the NFHS (AKA, the high school equivalent of the NCAA) does for IRL sports. In fact, since November, the company has partnered with the NFHS to learn the nuances of HS sports to build out leagues and establish rules. Esports on the up and up  As esports' popularity continues to rise, colleges and professional organizations have started investing in scholarship programs and pro teams -- PlayVS wants to feed that talent funnel. According to TechCrunch, their new round of funding will go toward expanding the product and the team to eventually put PlayVS in every high school across the country. Made varsity on 3D Pinball: Space Cadet   Starbucks founder Howard Schultz calls it quits on coffee Howard Schultz, the beloved entrepreneur who built Starbucks into a global coffee powerhouse, is stepping down as chairman of his bean empire. Schultz, widely known for his outspoken political and social views, stepped down as CEO in 2016, and now, as he told Starbucks employees yesterday, he's "thinking about a range of options for [him]self, from philanthropy to public service." Rumors are swirling about a potential entry to politics... Schultz has been trying not to stoke rumors of an upcoming presidential campaign… while making some pretty presidential statements. "I want to be truthful with you without creating more speculative headlines," he told The New York Times. "For some time now, I have been deeply concerned about our country." *Cue speculative headlines* Whether or not he runs for office, Schultz's past actions have had a distinctly political flavor -- Starbucks' 2015 racial dialogue campaign, 2017 program to hire 10k refugees, and recent racial bias training have conditioned consumers to see Schultz's business as inherently political.  'Twas a good run for coffee's commander in chief During his tenure, Schultz expanded the company's footprint from  a handful of Seattle cafes into 28k locations in 77 countries -- driving the company share price up 21k% from its 1992 IPO price.  After such a long time with the company, Schultz admitted to reporters that "taking [his] green apron off is hard." But Bill Gates, whose dad helped Schultz buy Starbucks in 1987, believes in his old buddy, saying "it's exciting to consider what he might accomplish philanthropically." Schultz/Gates 2020   Tesla has reportedly refunded 23% of US Model 3 pre-orders  Two years ago, hundreds of thousands of people put $1k down to reserve Tesla's new, lower-priced Model 3 electric car, with the expectation that they would receive their vehicles in 2018. But, according to new data from Second Measure, 23% of all Model 3 deposits in the US were refunded by the end of April, with another two-thirds in limbo, either still holding out hope or waiting for their refund to be processed. Makes sense... The Model 3 has been riddled with major delays in the 2 years since Elon Musk and the gang began production, with the latest holdup reportedly to "improve automation." In Tesla's defense, they have started to hit their stride this year. With production rates on the rise, they believe they'll hit their 5k vehicle-per-week groove in the next month or so. The refunds don't necessarily mean bad news, but… yeah It should also be noted that some people could very well have stepped out of their place in line because they just flat out changed their minds. Recode also notes that these cancellations could help Tesla fulfill their promises in the long run -- with production rates still nowhere near as high as they need to be to fulfill 450k+ orders, the fewer cars they have to deliver, technically the better. You know what they say… The best way to hit a lofty goal? Lower the bar. Tesla seems like a stressful place to work   hustle con-tent A head start on making friends at Hustle Con Hustle Con isn't just about the content you hear onstage, it's about meeting people you vibe with -- and who can help you take your business, your career, and your life to the next level.  So, we asked Hustle Con attendees to send us their own "hustle" stories, to give you an idea of the kinds of people you'll meet on June 22 and, ya know, help break the ice.  Meet Janet and Erin: Closet entrepreneurs Ever bought new clothes, only to take them home and realize you got talked into buying some ridiculousness you'll never actually wear? Yeah, same. And, if you're as bad about making returns as we are, it's a real problem.  So, entrepreneurs Janet and Erin created a solution. Their company, SilkRoll, lets consumers exchange clothing for points, then use those points to buy new clothes. From their tiny studio in San Francisco, Janet and Erin (and their army of interns) handle everything from fundraising to ad strategies to photographing products.  And, even though SilkRoll has recirculated over 10k items, they still have to hustle to pay the bills: Erin works on the side as a resume writer and Janet manages a stock portfolio in her "free" time. Luckily, they just raised a seed-round of over $100k from their community to keep SilkRollin'. Keep an eye out for these 2 at Hustle Con, send your own story to kera@thehustle.co -- Oh, and grab your Hustle Con ticket before it's too late. -- Kera, Head of Bringing People Together GET YOUR TICKETS → early, mid, late In this section, we examine trends and products floating around the web and place them on the much-loved adoption curve. Early: RSVPing to our Facebook AMA w/ Penny Hoarder founder (Kyle Taylor) There's nothing like being first in line. So here's your chance: This Wednesday at 11 AM PST we will be hosting a Facebook livestream w/ Kyle Taylor.  Kyle is the CEO and Founder of the Penny Hoarder a company that was dubbed the # 1 fastest-growing private media company in the U.S. for two years in a row... all while being bootstrapped. Dying to ask Kyle a question? RSVP and submit them here. [Hustle Con] Mid: Getting in on the Fortnite craze while the memes are still hot If the internet buzz hasn't compelled you to check it out already, Fortnite is a game where 99 players parachute from a party bus onto a single map, loot for weapons, and use their shooting skills, plus their ability to build defensive positions (forts), until one person (or team) emerges victorious. Oh, and the map shrinks every few minutes. It's funny, insane, addictive (but… in a good way, right?), and it's free to play. [Epic Games] Late: Finding your lost [insert anything here] with Tile [AD] Seriously, these Bluetooth trackers are a game changer. Since 2012, these tiny squares have been helping folks find everything from lost keys and wallets to misplaced water bottles and pets.  Just attach a Tile to the things you couldn't live without, and presto. If, say your wallet, ever gets up and walks away, break out the app and hunt that leather flapper down. You can even help others find lost items through the Tile app. And with Father's Day around the corner, it's the perfect gift for ever-forgetful fathers everywhere. [TILE] This edition of The Hustle was brought to you by When good customers take a wrong churn And hey, it's hard to get them back -- so don't lose them.  Whether it's a declined payment, card over limit, or gateway errors (AKA internet gremlins), subscriber churn is the Kryptonite of any subscription business.  And keeping track of every failed transaction? The looney bin called, it wants you back. So, how can you keep your subs paying and stay sane?  Use Recurly.  Come in, sign up, stay, and pay awhile Recurly is the subscription management platform designed to maximize revenues. Companies like Asana, Sling TV, and Twitch trust Recurly to keep their subs smiling and onboard.   With Recurly's subscription management platform, subscribers pay with whatever suits their fancy -- credit cards, debit cards, invoices, you name it -- then Recurly manages their billing seamlessly with a range of plans, payment pages, and pricing models at your disposal.  Recurly uses machine learning to catch payment errors in the act, meaning your days of losing subs to transaction declines and other payment mischief are over. Subscribers sign up, Recurly keeps them paying -- it's that simple. Take Recurly for a test drive and see how easy it is to keep your subscribers coming back again and again.    Now Playing: Here Comes Your Man, Pixies. Doolittle sounds like a concept album — if the concept was 'f*ck it'. Riddled with radio hits and cult classics, it's a lesson on riding the wave and not asking where it came from. 0 SHARE THE HUSTLE REFERRALS http://ambassadors.thehustle.co/?ref=4991210e5d YOUR UNIQUE URL Zack Crockett NEWS WRITER Wes Schlagenhauf NEWS WRITER Conor Grant NEWS WRITER Kolby Hatch AD WRITER Lindsey "Lettered in Crash Bandicoot" Quinn MANAGING EDITOR Emile Endicott In-Law Hospitality Provider SUBSCRIBE JOBS ADVERTISE EVENTS SHOP Join our Facebook community → You opted in by signing up, attending an event, or through divine intervention. 771 CLEMENTINA STREET, SAN FRANCISCO, CA 94103, UNITED STATES • 415.506.7210 Never want to hear from us again? Break our hearts and unsubscribe