Skype

Skype is a freemium voice-over-IP service and instant messaging client that is currently developed by the Microsoft Skype Division. The name originally derived from "sky" and "peer".

Skype was first released in August 2003. It was written by Estonian developers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, Danish Janus Friis, and Swedish Niklas Zennström, who had also originally developed Kazaa.Skype had 663 million registered users as of the end of 2010.It was bought by Microsoft in 2011 for $8.5 billion. Microsoft's Skype division headquarters is in Luxem

bourg, but most of the development team and 44% of the overall employees of the division are still situated in Tallinn and Tartu, Estonia.

The service allows users to communicate with peers by voice using a microphone, video by using a webcam, and instant messaging over the Internet. Phone calls may be placed to recipients on the traditional telephone networks. Calls to other users within the Skype service are free of charge, while calls to landline telephones and mobile phones are charged via a debit-based user account system. Skype has also become popular for its additional features, including file transfer, and videoconferencing. Competitors include SIP and H.323-based services, such as Linphone and Google Voice.

Unlike most other VoIP services, Skype is a hybrid peer-to-peer and client–server system. It makes use of background processing on computers running Skype software, and this is reflected in Skype's original proposed name of Sky Peer-to-Peer.

Some network administrators have banned Skype on corporate, government, home and education networks, citing reasons such as inappropriate usage of resources, excessive bandwidth usage, and security concerns.

History

Skype was founded in 2003 by Janus Friis from Denmark and Niklas Zennström from Sweden.The Skype software was created by the Estonians Ahti Heinla, Priit Kasesalu, and Jaan Tallinn The first public beta version was released on 29 August 2003.

eBay acquisition

On 12 September 2005, eBay Inc. agreed to acquire Luxembourg-based Skype Technologies SA for approximately US$2.5 billion in up-front cash and eBay stock, plus potential performance-based consideration.

Silver Lake, Andreessen Horowitz and the Canada Pension Plan Investment Board acquisition

On 1 September 2009, it was announced that eBay was selling 65% of Skype for US$1.9 billion, valuing Skype at US$2.75 billion.

Microsoft acquisition

On 10 May 2011, Microsoft Corporation acquired Skype Communications, S.à r.l for US$8.5 billion.The company was incorporated as a division of Microsoft, and Microsoft acquired all of the company's technologies with the purchase. This was completed on 13 October 2011.

Windows Live Messenger merger

Microsoft phased out its long-standing Windows Live Messenger instant messaging service in favour of Skype, although Messenger will continue in mainland China. Microsoft began this transition in April 8, 2013, and completed the move by April 30.

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