A better solution would have been to drive more users to paid accounts.

Microsoft buying them doesn't even solve the problem that they're not financially viable right now. Unless cutting HR and other support roles is enough to bump them to profitability, but I doubt it.

At this point it's too late, though, because this sale is a direct consequence of them taking VC funding a few years back. How was a website for hosting source code ever going to satisfy venture capitalists looking for a big pay out?