Skype Technologies

Three Estonian entrepreneurs launched a service in 2003 that turned personal computers into telephone handsets. Niklas Zennström, Janus Friis, and Jaan Tallinn built a platform allowing free computer-to-computer calls and reduced-rate connections to landlines. This Voice over IP technology disrupted traditional telecom giants by offering video chat and instant messaging features that families and businesses adopted globally.

EBay purchased the company in 2005 but sold a majority stake to private investors four years later. Microsoft completed its acquisition of the entire firm in May 2011 for $8.5 billion, integrating the brand into its Office Product Group. For over a decade, Skype operated as a subsidiary serving hundreds of millions of users while facing regulatory hurdles in nations concerned about data control and encryption standards.

Microsoft announced the shutdown of the consumer service on February 28, 2025, citing a strategic shift to prioritize Microsoft Teams. The final call ended on May 5, 2025, marking the end of more than two decades of operation. While the original entity dissolved, reports from April 2026 suggest Estonia plans to relaunch a sovereign version of the platform as a European alternative. [edit]