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Its 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.Skype allows users to communicate over the Internet by voice using a microphone, by video using a webcam, and by instant messaging.

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Some network administrators have banned Skype on corporate, government, home, and education networks, On 12 September 2005, e Bay Inc.agreed to acquire Luxembourg-based Skype Technologies SA for approximately US.5 billion in up-front cash and e Bay stock, plus potential performance-based consideration.On 1 September 2009, it was announced that e Bay was selling 65% of Skype to Silver Lake, Andreessen Horowitz, and the Canada Pension Plan Investment Board for US.9 billion, valuing Skype at US.75 billion.On , Microsoft Corporation acquired Skype Communications, S.à r.l for US.5 billion.) (stylized as skype) is an application that provides video chat and voice call services.Users may exchange such digital documents as images, text, video and any others, and may transmit both text and video messages.

Skype allows the creation of video conference calls.Skype is available for Microsoft Windows, Macintosh, or Linux, as well as Android, Blackberry, Apple and Windows smartphones and tablets. Much of the service is free, but Skype Credit or a subscription is required to call a landline or a mobile phone number.At the end of 2010, there were over 660 million worldwide users, with over 300 million estimated active each month as of August 2015.First released in August 2003, Skype was created by the Swede Niklas Zennström and the Dane Janus Friis, in cooperation with Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, Estonians who developed the backend that was also used in the music-sharing application Kazaa.Silver Lake, Andreessen Horowitz and the Canada Pension Plan Investment Board announced the acquisition of 65% of Skype for .9 billion from e Bay, which attributed to the enterprise a market value of .92 billion.Microsoft bought Skype in May 2011 for .5 billion.

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