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Skype was later acquired by Microsoft in May 2011 for $8.5 billion.Microsoft's Skype division headquarters are in Luxembourg, but most of the development team and 44% of the overall employees of the division are still situated in Tallinn and Tartu, Estonia.

The 2013 mass surveillance disclosures revealed that Microsoft has granted intelligence agencies unfettered access to supernodes and Skype communication content.

The name for the software is derived from "Sky peer-to-peer", which was then abbreviated to "Skyper".

Skype is available to download onto computers running Microsoft Windows, Mac, or Linux, as well as Android, Blackberry, i OS, and Windows Phone smartphones and tablets.

Much of the service is free, but users require Skype Credit or a subscription to call landline or mobile numbers. First released in August 2003, Skype was created by Dane Janus Friis and Swede Niklas Zennström in cooperation with Estonians Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, who developed the backend, which was also used in music-sharing application Kazaa.

In September 2005, e Bay acquired Skype for $2.6 billion.

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In September 2009, Silver Lake, Andreessen Horowitz, and the Canada Pension Plan Investment Board announced the acquisition of 65% of Skype for $1.9 billion from e Bay, valuing the business at $2.75 billion.

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