Microsoft acquired Skype in 2011 for about $8.5 billion, making the internet-calling service part of its communications portfolio.
Skype was founded in 2003 by developers from Estonia, Denmark, and Sweden, with technology based partly on peer-to-peer networking. It became popular because users could make free voice and video calls over the internet, while calls to traditional phone numbers were available for a fee.
Microsoft’s purchase followed earlier ownership by eBay and an investor group led by Silver Lake. The acquisition gave Microsoft a globally recognized communications brand that could support Windows, Xbox, Office, and later Microsoft Teams. Skype and Teams are related Microsoft communication products, but they are separate services; Teams was developed as a workplace collaboration platform rather than acquired as Skype itself.