Microsoft acquired Skype in 2011 for $8.5 billion, making the internet-calling company part of its communications business.
Skype was founded in 2003 by Janus Friis and Niklas Zennström, with software developed by Estonian programmers. Its free voice and video calls helped popularize internet-based communication, while paid services connected users to traditional phone numbers.
Before Microsoft bought it, Skype had changed owners several times. eBay acquired Skype in 2005, and an investor group led by Silver Lake later purchased it. Microsoft’s acquisition was completed in October 2011. Skype technology was integrated into products such as Outlook and Xbox, although Microsoft later emphasized Teams for workplace communication. Skype is sometimes confused with Teams, but they are separate Microsoft services with different origins and audiences.