Some network administrators have banned Skype on corporate, government, home, and education networks, citing such reasons as inappropriate usage of resources, excessive bandwidth usage and security concerns. Skype-to-Skype calls are free of charge, while calls to landline telephones and mobile phones (over traditional telephone networks) are charged via a debit-based user account system called Skype Credit. Skype implements a freemium business model. Skype allows users to communicate over the Internet by voice, using a microphone, by video using a webcam, and by instant messaging. Skype division headquarters are in Luxembourg, but most of the development team and 44% of all the division's employees are still situated in Tallinn and Tartu, Estonia.

Microsoft bought Skype in May 2011 for $8.5 billion. 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 eBay, which attributed to the enterprise a market value of $2.92 billion.

In September 2005, eBay acquired Skype for $2.6 billion.

įirst released in August 2003, Skype was created by Swedish entrepreneur Niklas Zennström and Danish entrepreneur Janus Friis, in cooperation with four Estonian developers.

As of March 2020, Skype was used by 100 million people on a monthly basis and by 40 million people on a daily basis. Users may transmit text, video, audio and images. Skype also provides instant messaging services. Skype is a telecommunications application that specializes in providing video chat and voice calls between computers, tablets, mobile devices, the Xbox One console, and smartwatches via the internet.

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