In 2005, the online auction site eBay acquired Skype.
Skype was founded in 2003 by Niklas Zennström, Janus Friis, and Estonian developers including Ahti Heinla, Priit Kasesalu, Jaan Tallinn, and Toivo Annus. Its internet-based voice and video calling service had grown rapidly, making it an attractive addition to eBay’s online marketplace.
On September 12, 2005, eBay agreed to acquire Skype Technologies. The deal was commonly reported at about $2.6 billion, consisting of cash and eBay stock, with additional performance-based payments potentially raising the total. The acquisition was completed in October 2005.
The strategy was to connect buyers and sellers through real-time voice communication, although the expected integration benefits did not fully materialize. eBay later sold most of Skype in 2009 to an investor group. Microsoft acquired Skype in 2011 for $8.5 billion, a later transaction that is often confused with eBay’s original purchase. Google, Yahoo, and Amazon were not the online auction company that acquired Skype.