Gitlab is reportedly up for sale
GitLab is exploring a sale, attracting interest from Datadog. Valued at $8 billion, it faces competition and pricing pressures while experiencing significant revenue growth and cash flow positivity.
Read original articleGitLab is reportedly exploring a sale, having attracted interest from potential buyers, including cloud monitoring firm Datadog. Valued at approximately $8 billion, GitLab is a significant player in the software development sector, boasting over 30 million registered users and serving more than half of the Fortune 100 companies. The company operates entirely remotely from its San Francisco headquarters, which has positioned it as a leader in the remote work movement. Despite its strong market presence, GitLab faces challenges, including a 16% drop in shares this year amid concerns over customer spending and competition from rivals like Microsoft, which owns GitHub. GitLab's recent financial performance shows a revenue increase of 33% year-over-year, reaching $169.2 million, and it has achieved cash flow positivity for the first time. However, the competitive landscape and pricing pressures remain significant. The potential sale aligns with a broader trend of consolidation in the tech industry, which has seen a surge in mergers and acquisitions, totaling $327.2 billion in the first half of 2024. GitLab's unique ownership structure complicates any sale, as CEO Sid Sijbrandij holds a substantial voting stake, and Alphabet, Google's parent company, also has a significant interest. The outcome of these discussions and their implications for the tech community are yet to be determined.
- GitLab is considering a sale, with Datadog as a potential buyer.
- The company is valued at around $8 billion and has over 30 million users.
- GitLab faces competition from major players like Microsoft and pricing pressures.
- The tech sector is experiencing a wave of mergers and acquisitions.
- GitLab's ownership structure complicates potential sale negotiations.
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I've also never felt compelled to use Gitlab. They literally offer no significant advantage other than being an alternative to Github.
If I started over, I'd go with Drew's Sourcehut hub for the sake of actually shooting for something different.
I don't really see who would pay $8B for this business which has no moat-future.
https://youtube.com/watch?v=tLdRBsuvVKc
It’s a shame they are selling out, but I suppose it was bound to happen sooner or later. GH is vacuuming up all of the market share.
I kind of liked the ability to self host my own GL. But for small/personal use cases. It was a bit overkill.
It's a bit worrying to think about the impact a purchase/merger might have on the product.
What the article doesn't make clear is how much of the company capital is public? If the founder owns 45% of voting shares and Google/Alphabet has 22%, are only 33% of the shares actually on the public markets?
For example my bill with no additional needed features has risen from 6€ per user per month or so to €29 in something like 2-3 years.
I’m sure any serious buyer would look through that and realise some major churn is about to happen as renewals hit. - especially as they will be wanting customer/rev growth.
edit: I guess they do https://careers.datadoghq.com/remote/
Then, about 5 years ago I started working in a company that went the GitLab way, specifically due to the CI/CD support they provided directly in the platform.
At first, I didn't like the change so much, but as the project kept going, and we invested more and more in CI/CD, I can't see any going back. There's just nothing in GitHub that would allow us this kind of control and flexibly and automation over the build/testing/release process.
I get it if for your own personal development you prefer GitHub (I still do), but for anything of a medium/big size that's willing to invest time and money into a fully automated release process, GitLab is the way. And I guess that's where the value of GitLab to investors lies, in its appeal to the enterprise sector.
They really fucked up their pricing. There is such a steep cliff to climb these days. Literally starts at $30/user/month. You can almost get GitHub enterprise and Copilot for that price.
But their open core model, fully remote organizational structure, and overall product quality is highly valuable. How many open source distros self-host GitLab? Debian, Arch, Alpine, postmarketOS, any I'm missing? Then GNOME, KDE, and free desktop have their own instances. How many companies self-host or use gitlab.com? There is real value and momentum there. Would be a shame to succumb to impatience and AI frenzy. I doubt datadog can steward the project in the same way.
Gitlab has always been massive bloat that takes way too many people to maintain, and way too many resources to deploy. Not to mention proprietary feature gating that is a major turn-off to community contributions.
I wonder how long the new owners will add AI, Copilot, 2FA and other crap to their site.
I went github -> back to RCS and anon ftp -> just now to gitlab
I guess it is back to RCS and anon ftp.
FWIW, I would expect IBM to grab gitlab if it is really up for sale.
I use GitHub because there is no compelling reason not to and that’s what we have at work. But GitHub is stagnating and I have the idea of them having even more market share. Their AI propaganda is also insane.
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