Microsoft acquired Skype for $8.5 billion in 2011.
Skype began in 2003 as a peer-to-peer internet calling service founded by Niklas Zennström and Janus Friis. Its software let users make voice and video calls over the internet, helping popularize consumer VoIP.
Microsoft announced the acquisition in May 2011 and completed it in October. Skype became a Microsoft division and was integrated with products such as Windows, Xbox and Outlook. The purchase price was notably higher than earlier Skype transactions.
A common mix-up is confusing Skype’s acquisition with Microsoft’s purchase of LinkedIn, which was announced in 2016 for $26.2 billion. Skype’s earlier owner, eBay, had acquired it in 2005 before selling most of its stake to an investor group in 2009.