Who Owns Skype?
Skype is owned by Microsoft Corporation, a publicly traded American technology company. Microsoft acquired Skype in 2011 for $8.5 billion. Microsoft retired the standalone Skype brand in 2025, merging its capabilities into Microsoft Teams.
Parent Company
Microsoft Corporation
Acquired
2011
Status
Publicly Traded
Headquarters
Redmond, Washington, USA (Microsoft)
Who Owns Skype?
- Parent Company: Microsoft Corporation
- Ownership Type: Subsidiary
- Acquisition Year: 2011
- Company Type: Publicly Traded
- Stock Ticker: NASDAQ: MSFT
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Skype | Microsoft Corporation | Subsidiary |
History of Skype
- Founded: 2003
- Founders: Niklas Zennstrom, Janus Friis
- Acquired by Microsoft Corporation: 2011
Skype was founded in 2003 by Niklas Zennstrom (Swedish) and Janus Friis (Danish), the same entrepreneurs who had previously created the controversial file-sharing service Kazaa. This founding vision demonstrated exceptional insight into the growing demand for technology software solutions while establishing a distinctive approach that would define the technology software category for generations. The underlying peer-to-peer technology for Skype was developed by Estonian programmers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn (who later co-founded the AI safety organization Centre for the Study of Existential Risk). This strategic positioning demonstrated Skype's exceptional ability to create differentiated technology software solutions while maintaining consistent brand positioning and quality standards that would define the brand for decades.
Skype launched in August 2003 and quickly gained popularity by offering free voice calls between Skype users over the internet. This period of excellence demonstrated Skype's exceptional ability to scale operations while maintaining consistent brand positioning and quality standards across multiple technology software segments. At a time when international phone calls were expensive, Skype's ability to provide free, high-quality voice communication was revolutionary. The service also offered paid "SkypeOut" calls to traditional phone numbers at rates far below those of conventional telephone companies. This strategic diversification demonstrated Skype's exceptional ability to serve multiple consumer segments while maintaining its core brand identity and market leadership in the technology software industry.
By 2005, Skype had attracted over 50 million registered users and was growing rapidly. This continued evolution demonstrated Skype's exceptional ability to maintain market relevance while adapting to changing technology software requirements and technological advancements. eBay acquired Skype in September 2005 for approximately $2.6 billion, hoping to integrate voice communication into its auction platform to facilitate buyer-seller interactions. However, the integration never materialized as planned, and eBay struggled to find a strategic fit for Skype within its e-commerce business. This continued excellence demonstrates Skype's exceptional ability to maintain market leadership while adapting to changing technology software dynamics and regulatory requirements. This strategic integration demonstrated Skype's exceptional ability to integrate into larger technology software corporations while maintaining its core brand identity and cultural significance in the video-calling industry.
In 2009, a private investor group led by Silver Lake Partners acquired approximately 65% of Skype from eBay for $1.9 billion, valuing the company at approximately $2.75 billion. This continued evolution demonstrated Skype's exceptional ability to maintain market relevance while adapting to changing technology software requirements and corporate dynamics. Under Silver Lake's ownership, Skype continued to grow its user base and introduced video calling capabilities that became increasingly popular. This continued success represents a significant milestone in the evolution of video-calling and consumer-focused technology software solutions. This strategic partnership demonstrated Skype's exceptional ability to leverage corporate resources while maintaining its distinct technology software identity and market leadership.
Microsoft acquired Skype in May 2011 for $8.5 billion, outbidding Google and Facebook. This continued evolution demonstrated Skype's exceptional ability to maintain market relevance while adapting to changing technology software requirements and technological advancements. Microsoft CEO Steve Ballmer positioned the acquisition as central to Microsoft's communications strategy, integrating Skype into Windows, Xbox, and Outlook. At its peak, Skype had over 300 million monthly active users and was synonymous with video calling, to the point where "Skyping" became a common verb. This continued excellence demonstrates Skype's exceptional ability to maintain market leadership while adapting to changing technology software dynamics and regulatory requirements. This strategic integration demonstrated Skype's exceptional ability to integrate into larger technology software corporations while maintaining its core brand identity and cultural significance in the video-calling industry.
However, Skype's dominance was gradually eroded by competitors including Apple FaceTime, Google Hangouts (later Google Meet), WhatsApp, and Zoom. This continued evolution demonstrated Skype's exceptional ability to maintain market relevance while adapting to changing technology software requirements and corporate dynamics. The COVID-19 pandemic in 2020, which could have been Skype's moment of triumph, instead saw Zoom emerge as the dominant video conferencing platform, largely because Zoom offered a simpler, more reliable experience. This continued success represents a significant milestone in the evolution of video-calling and consumer-focused technology software solutions. This strategic partnership demonstrated Skype's exceptional ability to leverage corporate resources while maintaining its distinct technology software identity and market leadership.
Microsoft launched Microsoft Teams in 2017 as an enterprise collaboration platform, and Teams quickly grew to become the company's primary communications product. This continued evolution demonstrated Skype's exceptional ability to maintain market relevance while adapting to changing technology software requirements and technological advancements. Teams offered video calling, messaging, file sharing, and integration with Microsoft 365 applications, effectively replacing Skype for Business in the enterprise market. In May 2025, Microsoft officially retired the standalone Skype consumer product, migrating users to Microsoft Teams Free, which incorporated Skype's consumer features. This continued excellence demonstrates Skype's exceptional ability to maintain market leadership while adapting to changing technology software dynamics and regulatory requirements. This strategic integration demonstrated Skype's exceptional ability to integrate into larger technology software corporations while maintaining its core brand identity and cultural significance in the video-calling industry. This continued success represents a significant milestone in the evolution of video-calling and consumer-focused technology software solutions. This strategic partnership demonstrated Skype's exceptional ability to leverage corporate resources while maintaining its distinct technology software identity and market leadership. This continued excellence demonstrates Skype's exceptional ability to maintain market leadership while adapting to changing technology software dynamics and regulatory requirements. This strategic integration demonstrated Skype's exceptional ability to integrate into larger technology software corporations while maintaining its core brand identity and cultural significance in the video-calling industry.
About Microsoft Corporation
Microsoft operates through three primary business segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.
The Intelligent Cloud segment, anchored by Microsoft Azure, generated $25.5 billion in Q2 FY2026 revenue, up 19% year-over-year, with Azure itself growing 38% on a constant currency basis. Azure's growth has been driven by AI workloads, with Microsoft reporting that AI services contributed 13 percentage points to Azure's growth in Q2 FY2026. The cloud segment surpassed $40.9 billion in total quarterly revenue, a significant milestone reflecting the company's dominant position in enterprise cloud computing.
The Productivity and Business Processes segment, which includes Microsoft 365 (formerly Office 365), LinkedIn, and Dynamics 365, generated $29.4 billion in Q2 FY2026 revenue, up 14% year-over-year. Microsoft 365 Copilot, the AI-powered productivity assistant integrated into Word, Excel, PowerPoint, and Teams, reached 15 million commercial seats in Q2 FY2026, demonstrating strong enterprise adoption of AI-powered productivity tools.
The More Personal Computing segment, which includes Windows, Xbox, Surface devices, and Bing search, generated $14.7 billion in Q2 FY2026 revenue, up 4% year-over-year. Xbox content and services revenue grew 2%, while search and news advertising revenue increased 21%, reflecting Bing's growing market share through AI-powered search features.
Microsoft returned $12.7 billion to shareholders through dividends and share repurchases in Q2 FY2026, up 32% compared to the same period in the prior year, reflecting the company's strong cash generation and commitment to shareholder returns.
- Founded: 1975
- Headquarters: Redmond, Washington, USA
- Company Type: Publicly Traded
- Stock: NASDAQ: MSFT
Where Is Skype Made / Based?
- Headquarters: Redmond, Washington, USA (Microsoft)
- Manufacturing / Operations: Global (cloud-based)
Brands Owned by Microsoft Corporation
- GitHub - Web-based platform for software development and version control using Git, widel...
- LinkedIn - American professional networking platform founded in 2002, owned by Microsoft Co...
- Microsoft Teams - Unified communication and collaboration platform developed by Microsoft for work...
- Minecraft - Best-selling sandbox video game of all time with over 300 million copies sold ac...
- Outlook - Microsoft's personal information manager and email client application for indivi...
- Windows - Microsoft's flagship operating system family for personal computers, servers, an...
- Xbox - Microsoft's video gaming brand encompassing consoles, games, and online gaming s...
Skype Ownership: Pros & Cons
Advantages
- +Pioneered consumer VoIP and video calling, transforming global communications
- +At peak, had over 300 million monthly active users worldwide
- +"Skype" became a verb synonymous with video calling
- +Technology and user base successfully migrated to Microsoft Teams
- +Legacy continues through Teams' consumer and enterprise features
Considerations
- -Failed to capitalize on COVID-19 video calling boom (lost to Zoom)
- -Multiple ownership changes (eBay, Silver Lake, Microsoft) disrupted strategic focus
- -Standalone product retired in 2025 after 22 years
- -$8.5 billion acquisition price questioned given eventual product retirement
- -Brand equity diminished as competitors offered simpler alternatives
Frequently Asked Questions About Skype
Competitors to Skype
These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.
| Brand | Parent Company | Country | Founded | Market Position | Primary Market | Gender Target |
|---|---|---|---|---|---|---|
| Signal Foundation | USA | 2014 | Mass Market | North America | All Genders |
Competitive Analysis
Market Positioning: Skype competes with 1 brands in the same categories, ranging from mass market to luxury positioning.
Geographic Distribution: Competitors are headquartered across multiple regions, indicating global competition in this market segment.
Brand Heritage: Competitor brands range from established heritage brands to newer market entrants, with founding years spanning several decades.
Microsoft Corporation Stock Information
Jobs at Microsoft Corporation
Latest News About Skype
Related Articles About Skype
View more articlesThe Microsoft Acquisition Timeline: From Skype to Activision
Microsoft has spent over $200 billion on acquisitions since 2011. From Skype to LinkedIn to Activision Blizzard, trace how Microsoft built its modern empire.
The Most Acquired Categories: Tech vs CPG vs Pharma
Which industries see the most brand acquisitions? We compared technology, consumer goods, and pharmaceuticals to find out where the most M&A activity happens and why.
The Biggest Brand Acquisitions of All Time: Deals That Reshaped Consumer Markets
From AB InBev's $100 billion beer merger to Microsoft's $69 billion Activision deal, these are the largest brand acquisitions in history and how they changed what you buy.
People Also Searched
Discover popular brands and companies in the Technology & Software category and related searches from other users.

Acrobat Reader
Adobe's free PDF viewer application for viewing, printing, and annotating PDF documents across multiple platforms.

Alexa
Amazon's artificial intelligence voice assistant technology powering smart speakers, devices, and services for voice-activated control and information retrieval.

Amazon Advertising
Amazon's advertising platform providing sponsored product ads, display advertising, and marketing solutions for sellers and brands.

