A new phase in global communications began when a group of Nordic programmers founded Skype, in 2003. Estonian developers Janus Friis, Niklas Zennstrom contributed to the development of the software. This eventually led to the beta version of the calling software be releasing by August of 2003.
The software derived its name from ‘Sky peer-to-peer’ which eventually abbreviated to ‘Skyper.’ However, only after ‘r’ was dropped from the name, did the company eventually get the domain name. Skyper already had other domain names associated with it.
2005, the Turning point
By 2005, the company had drawn up an agreement with web portal Onet.pl, the web portal from Poland. Later in September, eBay Inc purchased Skype by $2.5 billion. The software grew to a world service, offering users a low-cost alternative to communicate overseas.
But by 2009 eBay Inc had agreed to sell nearly 65% of its stake in Skype. The buyer of this stake was Andreesen Horowitz, Silver Lake as well as Canadian Pension Plan Investment Board. eBay Inc earned as much as $1.9 billion with the stake-sale, given Skype’s valuation in 2009, by $2.75 billion.
Skype continued to make inwards into traditional communication markets. The expensive land-line to mobile services soon began to be replaced by free-to-call skype. The cost of a Skype call was only limited only to the network carrier charges for the data plan.
2011- Microsoft Acquisition
In 2011 the company came to be acquired by Microsoft Corporation, the giant software developer and Operating System provider, Windows. The cost of the acquisition was $8.5 billion for Microsoft Corporation.
Post-Acquisition To Date
In the period after the acquisition, Skype has grown in format and the features it offers.
It’s basic video-calling function has now morphed into an advanced personal and professional communication tool. It now includes advanced work collaboration suites, such as attaching files, sharing files as well as spread sheets.
Users now do not have to move away from Skype to check on office documents or personal files that are part of the conversation. Skype is the communication tool of the millennials, giving them the opportunity to interact online