View source for Skype Technologies

{{Short description|Subsidiary of Microsoft}}
{{About|the company which develops Skype|the instant messaging client|Skype}}
{{Use dmy dates|date=July 2024}}
{{Update|date=July 2024}}
{{Infobox company
| name = Skype Technologies S.A.R.L
| logo = Skype logo (fully transparent).svg
| logo_size = 210px
| logo_caption = Skype Logo (2012-2019)
| type = [[Subsidiary]]
| founder = [[Janus Friis]]<br>[[Niklas Zennström]]
| defunct = {{End date|2025|05|05|df=y}}<ref name="Skype Closure">{{Cite web |last=Teper |first=Jeff |date=2025-02-28 |title=The next chapter: Moving from Skype to Microsoft Teams |url=https://www.microsoft.com/en-us/microsoft-365/blog/2025/02/28/the-next-chapter-moving-from-skype-to-microsoft-teams/ |access-date=2025-03-04 |website=Microsoft 365 Blog |language=en-US}}</ref>
| fate = Dissolved
| area_served = Worldwide
| key_people = Deepak Kashyap
| industry = Telecommunications
| products = [[Videotelephony]]<br>[[Online chat]]<br>[[Business telephone system|Business VoIP]]
| num_employees = {{increase}} 788 <small>(2010)</small>
| subsid = [[GroupMe]]
| parent = [[eBay]] (2005–2009)<br/>[[Microsoft]] (2011–2025)
| foundation = {{Start date and age|2003|8|29|df=y}}
| successor = Microsoft
| location = Luxembourg
| homepage = {{official URL}}
}}

'''Skype Technologies''' (also known as '''Skype Software''', '''Skype Communications''', '''Skype Inc.''', and '''Skype Limited''') was a telecommunications company headquartered in [[Luxembourg (city)|Luxembourg]], Luxembourg, whose chief business was the development and marketing of the [[videotelephony|video chat]] and [[instant messaging]] computer software program [[Skype]], and various [[Internet telephony]] services associated with it.<ref>{{cite web |title=About Skype |publisher=[[Skype]] |url=https://www.skype.com/en/about/ |access-date=3 October 2014}}</ref> [[Microsoft]] purchased the company in 2011, and it had since then operated as their wholly owned subsidiary;<ref>{{cite news |title=Microsoft confirms takeover of Skype |publisher=[[BBC]] |date=10 May 2011 |url=https://www.bbc.co.uk/news/business-13343600 |access-date=3 October 2014}}</ref> as of 2016, it was operating as part of Microsoft's Office Product Group. The company was a ''[[société à responsabilité limitée]]'', or SARL, equivalent to an American [[limited liability company]].

Skype, a [[voice over IP]] (VoIP) service, was first released in 2003 as a way to make free computer-to-computer calls, or reduced-rate calls from a computer to telephones. Support for paid services such as calling landline/mobile phones from Skype (formerly called SkypeOut), allowing landlines and mobile phones to call Skype (formerly called SkypeIn and now Skype Number), and voice messaging generated the majority of Skype's revenue.

[[eBay]] acquired Skype Technologies S.A. in September 2005 and in April 2009 announced plans to spin it off in a 2010 [[initial public offering]] (IPO).<ref>{{cite web |title=EBay to buy Skype in $2.6bn deal |publisher=[[BBC]] |date=12 September 2005 |url=http://news.bbc.co.uk/2/hi/business/4237338.stm |access-date=2 October 2014}}</ref> In September 2009,<ref>{{cite news |title=Canada Pension plan buys Skype stake &#124; Toronto Star |work=Thestar.com |date=2 September 2009 |url=https://www.thestar.com/business/2009/09/02/canada_pension_plan_buys_skype_stake.html |access-date=21 August 2014}}</ref> [[Silver Lake Partners|Silver Lake]], [[Andreessen Horowitz]], and the [[Canada Pension Plan Investment Board]] announced the acquisition of 65% of Skype for $1.9&nbsp;billion from eBay, valuing the business at $2.75&nbsp;billion. Skype was acquired by Microsoft in May 2011 for $8.5&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=8500000000|start_year=2011}}}} in {{Inflation/year|US-GDP}}).

As of 2010, Skype was available in 27 languages and had 660 million worldwide users, an average of over 100&nbsp;million active each month,<ref>{{cite news |title=Profile: How Skype connected |work=BBC News |date=10 May 2011 |url=https://www.bbc.co.uk/news/technology-13350425 |access-date=10 May 2011}}</ref> and had faced challenges to its intellectual property amid political concerns by governments wishing to control telecommunications systems within their borders.

In February 2025, Microsoft announced the shutdown of Skype on 5 May 2025. The company would also be dissolved.<ref name="Skype Closure">{{Cite web |last=Teper |first=Jeff |date=2025-02-28 |title=The next chapter: Moving from Skype to Microsoft Teams |url=https://www.microsoft.com/en-us/microsoft-365/blog/2025/02/28/the-next-chapter-moving-from-skype-to-microsoft-teams/ |access-date=2025-03-04 |website=Microsoft 365 Blog |language=en-US}}</ref><ref name="shutdown">{{Cite web |last=Warren |first=Tom |date=2025-02-28 |title=Microsoft is shutting down Skype in favor of Teams |url=https://www.theverge.com/news/621353/microsoft-skype-shutting-down-retirement-may-2025 |access-date=2025-02-28 |website=The Verge |language=en-US}}</ref>

==History==
* Skype was founded in 2003 by [[Janus Friis]] from Denmark and [[Niklas Zennström]] from Sweden,<ref>{{cite web |title=About Skype: What is Skype? |url=http://about.skype.com/ |access-date=28 July 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110511000725/http://about.skype.com/ |archive-date=11 May 2011}}</ref> having its headquarters in [[Luxembourg]] with offices now in [[Berlin]], Frankfurt, [[Tallinn]], [[Tartu]], Stockholm, London, [[Palo Alto]], Prague,<ref>{{cite web |title=Skype is expanding engineering to Prague |last=Kase |first=Jaanus |publisher=Skype Blogs  |url=http://share.skype.com/sites/en/2006/12/skype_is_expanding_engineering.html |access-date=5 December 2006 |url-status=dead |archive-url=https://web.archive.org/web/20061208093554/http://share.skype.com/sites/en/2006/12/skype_is_expanding_engineering.html |archive-date=8 December 2006}}</ref> and [[Redmond, Washington]].

* The Skype software was originally developed by Estonians [[Ahti Heinla]], [[Priit Kasesalu]], and [[Jaan Tallinn]], who together with [[Janus Friis]] and [[Niklas Zennström]] were also behind the peer-to-peer file sharing software [[Kazaa]].<ref>{{cite web |title=Skype&nbsp;— A Baltic Success Story |publisher=credit-suisse.com  |url=http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=163167&coid=7805&lang=EN |access-date=24 February 2008 |url-status=dead |archive-url=https://web.archive.org/web/20070927184732/http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=163167&coid=7805&lang=EN |archive-date=27 September 2007}}</ref> In April 2003, Skype.com and Skype.net domain names were registered.<ref>{{cite web |title=Skype.com WHOIS, DNS, & Domain Info – DomainTools |work=[[WHOIS]] |url=http://whois.domaintools.com/skype.com |access-date=2016-10-30}}</ref><ref>{{cite web |title=Skype.net WHOIS, DNS, & Domain Info – DomainTools |work=[[WHOIS]] |url=http://whois.domaintools.com/skype.net |access-date=2016-10-30}}</ref> In August 2003, the first public beta version was released.

* One of the initial names for the project was "Sky peer-to-peer", which was then abbreviated to "Skyper". However, some of the domain names associated with "Skyper" were already taken.<ref>{{cite web |title=The World's Hottest VC?  |url=http://www.eplanetventures.com/en/news/releases/pr_013006_1.html |url-status=dead |archive-url=https://web.archive.org/web/20080109184710/http://www.eplanetventures.com/en/news/releases/pr_013006_1.html |archive-date=9 January 2008}}</ref> Dropping the final "r" left the current title "Skype", for which domain names were available.<ref name="nameorigin">{{cite web |title=Origin of the name/word Skype |url=http://share.skype.com/blog/insight/origin_of_the_name%10word_%22skype%22/ |access-date=13 August 2010 |archive-url=https://web.archive.org/web/20051104064354/http://share.skype.com/blog/insight/origin_of_the_name%10word_%22skype%22/ |archive-date=4 November 2005}}</ref>

[[File:Skype-icon1.png|thumb|The Skype logo from 2006 to 2012]]
* In September 2005, SkypeOut was banned in China.<ref>{{cite web |title=China bans Skype |author=Jack McCarthy |date=9 September 2005 |publisher=InfoWorld |url=https://www.infoworld.com/article/2645279/china-bans-skype.html |access-date=7 June 2011}}</ref> In October of the same year, [[eBay]] purchased Skype<ref>{{cite web |title=eBay Completes Acquisition of Skype |publisher=eBay |url=http://investor.ebay.com/ReleaseDetail.cfm?ReleaseID=176402&FYear= |access-date=17 June 2006 |url-status=dead |archive-url=https://web.archive.org/web/20110818152145/http://investor.ebay.com/ReleaseDetail.cfm?ReleaseID=176402&FYear= |archive-date=18 August 2011}}</ref> for $2.6&nbsp;billion.<ref>{{cite web |title=EBay Buys Skype for $2.6 Billion |publisher=PCWorld |date=12 September 2005 |url=http://www.pcworld.com/article/122516/ebay_buys_skype_for_26_billion.html |access-date=11 May 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111026065245/http://www.pcworld.com/article/122516/ebay_buys_skype_for_26_billion.html |archive-date=26 October 2011}}</ref> (In 2011, the ''[[Ars Technica]]'' estimated the purchase price at $3.1&nbsp;billion, not $2.6&nbsp;billion.)<ref>{{cite web |title=WSJ: Microsoft to buy Skype for $7bn. Rest of world: for real? |date=10 May 2011 |url=https://arstechnica.com/information-technology/2011/05/wsj-microsoft-to-buy-skype-for-7bn-rest-of-world-for-real/ |quote=A Microsoft purchase would not be the first time Skype has been bought out; after being started in 2003, it was bought by eBay in 2005 for $3.1 billion. eBay then sold the majority of its stake in 2009 to a private investment group for $1.2 billion less than it paid.}}</ref> In December 2005, [[videotelephony]] was introduced.<ref>{{cite web |title=Skype Launches Next Generation Free Internet and Video Calling for Everyone |publisher=Skype |url=http://about.skype.com/2005/12/skype_launches_next_generation.html |access-date=17 June 2006 |url-status=dead |archive-url=https://web.archive.org/web/20060621212353/http://about.skype.com/2005/12/skype_launches_next_generation.html |archive-date=21 June 2006}}</ref>

[[File:Skype phone.jpg|thumb|A Skype phone manufactured by SMC Networks ({{Circa|2006}})]]
* In April 2006, the number of registered users reached 100 million. In October 2006, Skype 2.0 for Mac was released, the first full release of Skype with video for Macintosh, and in December, Skype announced a new pricing structure, with connection fees for all SkypeOut calls.<ref>{{cite web |title=Skype to Announce Disruptive Pricing Strategy for SkypeOut |url=http://about.skype.com/2006/12/skype_to_announce_disruptive_p.html#more |access-date=19 December 2006 |url-status=dead |archive-url=https://web.archive.org/web/20100805070630/http://about.skype.com/2006/12/skype_to_announce_disruptive_p.html#more |archive-date=5 August 2010}}</ref> Skype 3.0 for Windows was released.<ref>{{cite web |title=What is Skype? |publisher=Skype.com |url=https://www.skype.com/download/ |access-date=31 March 2009}}</ref>

* In 2006, a feature called "Skypecasting" was introduced as a beta. It allowed recordings of Skype [[voice over IP]] voice calls and [[teleconference]]s to be used as [[podcasts]]. Skypecasting remained in beta until it was discontinued on 1 September 2008. Skypecasts hosted public conference calls for up to 100 people at a time. Unlike ordinary Skype p2p conference calls, Skypecasts supported moderation features suitable for panel discussions, lectures, and town hall forums. Skype operated a directory of public Skypecasts.<ref>{{cite web |title=Goodnight Skypecasts&nbsp;— Skype Blogs |publisher=Share.skype.com |date=August 2008  |url=http://share.skype.com/sites/en/2008/08/goodnight_skypecasts.html |access-date=31 March 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090202145617/http://share.skype.com/sites/en/2008/08/goodnight_skypecasts.html |archive-date=2 February 2009}}</ref>

* Throughout 2007, updates (3.1, 3.2, and 3.5) added new features including Skype Find, Skype Prime, Send Money (which allowed users to send money via [[PayPal]] from one Skype user to another), video in mood, inclusion of video content in chat, call transfer to another person or a group, and auto-redial. Skype 2.7.0.49 (beta) for Mac OS X released adding availability of contacts in the Mac Address Book to the Skype contact list, auto redial, contact groups, public chat creation, and an in-window volume slider in the call window. During several days in August, Skype users were unable to connect to full Skype network in many countries<ref>{{cite news |title=Error in Skype's Software Shuts Down Phone Service |publisher=NY Times |last=Stone |first=Brad |date=17 August 2007 |url=https://www.nytimes.com/2007/08/17/business/17ebay.html?_r=1&oref=slogin |access-date=17 August 2007}}</ref> because of a Skype system-wide crash which was the result of exceptional number of logins after a Windows patch reboot ("[[Patch Tuesday]]").<ref>{{cite news |title=Skype blames outage on user reboot |work=The Times |location=London |last=Richards |first=Jonathan |date=20 August 2007 |url=http://technology.timesonline.co.uk/tol/news/tech_and_web/article2292536.ece |archive-url=https://web.archive.org/web/20110430074140/http://technology.timesonline.co.uk/tol/news/tech_and_web/article2292536.ece |url-status=dead |archive-date=30 April 2011 |access-date=23 May 2010}}</ref> In November, there was controversy when it was announced that users allocated certain London [[020]] numbers (specifically those beginning '7870') would lose them, after negotiations with the provider of this batch of numbers broke down.<ref>{{cite news |title=Skype faces 020 7870 cut-off |date=22 November 2007 |url=https://www.theregister.co.uk/2007/11/22/skype_down_again/ |access-date=26 February 2012 |archive-url=https://web.archive.org/web/20071123143234/https://www.theregister.co.uk/2007/11/22/skype_down_again/ |archive-date=23 November 2007}}</ref>

* By early 2008, the tumultuous ownership relations between the founders and eBay had resulted in significant leadership churn, with a succession of Skype presidents including Niklas Zennström, Rajiv Dutta, Alex Kazim, Niklas Zennström (again), and Henry Gomez, all holding that title at various points between 2005 and 2007. The business had failed to meet certain earn-out targets, growth was decelerating, product development had slowed significantly, and in October 2007 eBay took a $1.4&nbsp;billion 'impairment' on the value of Skype, admitting it had overpaid, and now valuing the company at about $2.7&nbsp;billion.<ref>{{cite web |title=ebays-skype-writedown |date=2 October 2007  |url=http://corporatetool.blogspot.com/2007/10/ebays-skype-writedown.html/ |access-date=2 October 2007 |url-status=dead |archive-url=https://web.archive.org/web/20080108062514/http://corporatetool.blogspot.com/2007/10/ebays-skype-writedown.html |archive-date=8 January 2008}}</ref>

* In October 2008, analysis revealed TOM-skype&nbsp;— the Chinese version of Skype run by TOM Online&nbsp;— sent content of text messages and encryption keys to monitoring servers.<ref>{{cite web |title="Breaching Trust, An analysis of surveillance and security practices on China's TOM-Skype platform", Information Warfare Monitor, 2 October 2008 |url=https://www.nartv.org/mirror/breachingtrust.pdf |access-date=10 October 2010}}</ref>

===Two original founders depart, new CEO, and the eBay years===
* For the six months after the departure of Zennström and Friis, Michael van Swaaij led the company as interim CEO, until the appointment of [[Josh Silverman]] in February 2008.<ref>{{cite web |title=eBay Inc. Appoints New CEOs of Skype and Shopping.com |date=25 February 2008 |url=http://about.skype.com/2008/02/ebay_inc_appoints_new_ceos_of.html/ |access-date=25 February 2008}}</ref> Silverman was "widely viewed as bringing in stability to Skype after a tumultuous phase that followed the exit of the two Skype co-founders."<ref>{{cite web |title=Ex-Skype CEO Josh Silverman Joins Greylock as EIR |date=7 October 2010 |url=http://gigaom.com/2010/10/07/ex-skype-ceo-josh-silverman-joins-greylock-as-eir/ |archive-url=https://archive.today/20120710014344/http://gigaom.com/2010/10/07/ex-skype-ceo-josh-silverman-joins-greylock-as-eir/ |url-status=dead |archive-date=10 July 2012 |access-date=7 October 2010}}</ref> Under Silverman's two-and-a-half-year tenure, the company focused its product efforts around video calling, ubiquity (gaining high penetration on smartphones, PCs, TVs, and consumer-electronic devices), building tailored offerings for enterprise customers, and diversifying revenue through subscriptions, premium accounts, and advertising.

* In advancing this strategy, Skype released many new products, substantially revamping its flagship [[Microsoft Windows|Windows]] software (3.8 -> 4.0), and its [[macOS]] and [[Linux]] software; while introducing new software products for smartphones, and consumer electronics. In 2009, Skype 4.0 was released, featuring full-screen high-quality video calling.<ref>{{cite news |title=New Skype 4.0 software adds full-screen video calls |publisher=Telegraph.co.uk |date=6 February 2009 |location=London |url=https://www.telegraph.co.uk/scienceandtechnology/technology/technologynews/4525013/New-Skype-4.0-software-adds-full-screen-video-calls.html |access-date=31 March 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090208135515/http://www.telegraph.co.uk/scienceandtechnology/technology/technologynews/4525013/New-Skype-4.0-software-adds-full-screen-video-calls.html |archive-date=8 February 2009}}</ref> the Linux client was updated, and an [[iPhone]] application was launched which topped the charts with over 1M downloads in its first two days.<ref>{{cite web |title=Skype for iPhone tops 1M downloads in two days |date=3 April 2009 |url=https://techcrunch.com/2009/04/02/skype-iphone-app-downloaded-one-million-times-in-first-two-days/ |access-date=3 April 2009}}</ref> Skype also announced the launch of its software for the [[Android (operating system)|Android]] platform.<ref>{{cite web |title=Skype Launches on Android Platform and more than 100 Java-Enabled Mobile Phones |date=8 January 2009 |url=http://about.skype.com/2009/01/skype_launches_on_android_plat.html/ |access-date=8 January 2009}}</ref>

* During this period Skype also discontinued lesser-used services such as support for the "Skype Me" presence indicator, which meant that a user was interested in receiving Skype calls from a non-contact. Skype also discontinued its SkypeCast service without explanation and added internal monthly and daily usage caps on their SkypeOut subscriptions, which had been advertised as "unlimited". Skype also discontinued its "dragonfly" feature, a community-generated yellow-pages product, and other features which were deemed to be under-performing or a distraction to management. Many users and observers had commented on the high rate of dropped calls and the difficulty reconnecting dropped calls. Updates including versions for the [[Sony]] [[PlayStation Portable|PSP]] hand-held gaming system, version 2.0 for Linux with support for video-conferencing.

* As part of its efforts to diversify revenues, Skype launched in April 2008 ''Skype for [[Session Initiation Protocol|SIP]]'', a service aimed at business users. At that time around 35 per cent of Skype's users were business users.<ref>{{cite news |title=Skype Targets Businesses to Ring Up New Revenue |newspaper=The Wall Street Journal |last=Fowler |first=Geoffrey A. |date=23 March 2009 |url=https://www.wsj.com/articles/SB123776338990608661 |access-date=23 March 2009}}</ref> In targeted premium products to consumers, Skype launched new monthly premium subscriptions products in May 2010.<ref>{{cite web |title=Skype to launch monthly subscriptions and group video chat |date=5 May 2010 |url=http://downloadsquad.switched.com/2010/05/05/skype-to-launch-monthly-subscriptions-and-group-video-chat/ |access-date=5 May 2010}}</ref>

* Marketing efforts were also re-vamped, with a particular focus on innovative partnerships with TV broadcasters to integrate Skype into their programming. [[The Oprah Winfrey Show]] began using Skype regularly to host video calls between Oprah and her viewers at home, culminating in a show dedicated exclusively to the wonders of Skype ("where the Skype are You", aired first in May 2009).<ref>{{cite news |title=Skype Gets the Oprah Treatment |date=21 May 2009 |work=The Wall Street Journal |last=Fowler |first=Geoffrey A. |url=https://blogs.wsj.com/digits/2009/05/21/skype-gets-the-oprah-treatment/ |access-date=21 May 2009}}</ref> Skype also became commonly used by network news stations around the world, as a cost-effective replacement for sending [[satellite truck]]s, and enabling fast response from citizen journalists. Skype was also integrated into scripted TV programming, such as [[Californication (TV series)|Californication]]; and in the seventh season of the U.S. syndicated version of the British game show ''[[Who Wants To Be a Millionaire]]'' in a new ''Ask the Expert'' video chat lifeline.

* These efforts led to accelerating growth of Skype's Connected Users and Paying Users and by 2009 Skype was adding about 380,000 new users each day.<ref>{{cite web |title=Skype Growing by 380,000 Users a Day |date=10 February 2009 |url=https://www.pcworld.com/article/159279/skype_growing_by_380000_users_a_day.html/ |access-date=10 February 2009}}</ref> By the end of 2009 Skype was generating around [[United States dollar|US$]]740 [[million]] in revenue.<ref name=techcrunch>{{cite web |title=Skype Hits 521 Million Users And $185 Million In Quarterly Revenue |date=21 October 2009 |url=https://techcrunch.com/2009/10/21/skype-hits-521-million-users-and-185-million-in-quarterly-revenue}}</ref>

* In January 2010, Josh Silverman was recognized for his accomplishments at Skype by being named First Runner Up in the TechCrunch "Crunchies" award for "Best CEO", beaten only by [[Mark Pincus]] of [[Zynga]].<ref>{{cite web |title=Congratulations Crunchies Winners! |date=8 January 2010 |url=https://techcrunch.com/2010/01/08/crunchies-winner/ |access-date=8 January 2010}}</ref>

===Independence and Silver Lake===
* Building on the revitalization which had begun in 2008, [[eBay]] announced, in April 2009, plans to spin off Skype through an initial public offering in 2010.{{clarify|date=December 2011}}<ref name="spinoff">{{cite web |title=eBay Inc. Announces press release for Plan for 2010 Initial Public Offering of Skype  |url=http://news.ebay.com/releasedetail.cfm?ReleaseID=377199 |access-date=14 April 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090416065725/http://news.ebay.com//releasedetail.cfm?ReleaseID=377199 |archive-date=16 April 2009}}</ref><ref>{{cite web |title=eBay to Acquire Skype press release |url=http://investor.ebay.com/releasedetail.cfm?ReleaseID=172666 |access-date=20 June 2008 |url-status=dead |archive-url=https://web.archive.org/web/20061217192249/http://investor.ebay.com/ReleaseDetail.cfm?releaseid=172666 |archive-date=17 December 2006}}</ref><ref name="WSJskype">{{cite news |title=EBay to Unload Skype In IPO, Citing Poor Fit |last=Fowler |first=Geoffrey |date=6 April 2009 |publisher=The Wall Street Journal |url=https://www.wsj.com/articles/SB123974180039718079 |access-date=12 January 2010}}</ref> In August, [[Joltid, Ltd.]] filed a motion with the U.S. Securities and Exchange Commission, seeking to terminate a licensing agreement with eBay which allowed eBay (and therefore Skype) to use the ''peer-to-peer communications technology'' on which Skype is based. If successful, this could have caused a shutdown of Skype as it existed, and made an [[Initial public offering|IPO]] challenging to execute.<ref>{{cite web |title=Skype in danger of being shut down |url=http://www.neowin.net/news/main/09/08/01/skype-in-danger-of-being-shut-down |url-status=dead |archive-url=https://archive.today/20120909124816/http://www.neowin.net/news/main/09/08/01/skype-in-danger-of-being-shut-down |archive-date=2012-09-09}}</ref> In September, eBay announced the sale of 65 per cent of Skype to a consortium of [[Index Ventures]] and [[Silver Lake Partners]].<ref>{{cite news |title=In a Sale, Skype Wins a Chance to Prosper |work=The New York Times |last=Stone |first=Brad |date=2 September 2009 |url=https://www.nytimes.com/2009/09/02/technology/companies/02ebay.html?scp=8&sq=silver+lake++skype&st=nyt |access-date=11 April 2011}}</ref> Early in September, Skype shut down the Extras developer program.<ref>{{cite web |author=Antoine Bertout |title=Skype.com |publisher=Share.skype.com |date=11 September 2009  |url=http://share.skype.com/sites/devzone/2009/09/the_future_of_skype_extras.html |access-date=10 October 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100405094619/http://share.skype.com/sites/devzone/2009/09/the_future_of_skype_extras.html |archive-date=5 April 2010}}</ref> In November, Skype settled the Joltid litigation and acquired all Skype technology in exchange for equity in the company<ref name="joltidsettlement">{{cite web |title=We've settled with Joltid |date=6 November 2009  |url=http://blogs.skype.com/en/2009/11/joltid_settlement.html |access-date=14 May 2011 |url-status=dead |archive-url=https://web.archive.org/web/20121118205740/http://blogs.skype.com/en/2009/11/joltid_settlement.html |archive-date=18 November 2012}}</ref> and eBay completed the sale of 70% of Skype to a consortium comprising Silver Lake Partners, Joltid, [[CPP Investment Board|CPPIB]], and [[Andreessen Horowitz]] for approximately $2&nbsp;billion, valuing the entire business at US$2.75&nbsp;billion.<ref name="ebayinc1">{{cite web |title=eBay Inc. Completes Sale of Skype  |url=http://www.ebayinc.com/content/press_release/20091119006361 |url-status=dead |archive-url=https://web.archive.org/web/20110826235646/http://www.ebayinc.com/content/press_release/20091119006361 |archive-date=26 August 2011}}</ref>

* In May 2010, Skype 5.0 beta was released, with a capacity to support group video calls involving up to four participants. Also in May, Skype released an updated client for the Apple iPhone that allowed Skype calls to be made over a 3G network. Originally, a [[3G]] call subscription plan was to be instituted in 2011, but Skype eventually dropped the plan.<ref name="3gfeedropped">{{cite news |last=Horsey |first=Julian |title=Skype iPhone App Update: With Multitasking & Drops 3G Fee |newspaper=Geeky Gadgets |date=22 July 2010 |url=https://www.geeky-gadgets.com/skype-iphone-app-update-with-multitasking-drops-3g-fee-22-07-2010/ |access-date=5 August 2010}}</ref> Rounding out its ubiquity push, Skype also announced deep integration of Skype software into the IP-connected TVs from [[Panasonic]], [[Samsung]], and [[Sony]].<ref>{{cite web |title=Get Skype on your TV |date=5 January 2010  |url=http://blogs.skype.com/en/2010/01/skype_on_your_tv.html/ |access-date=5 January 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100426125812/http://blogs.skype.com/en/2010/01/skype_on_your_tv.html |archive-date=26 April 2010}}</ref>

* In June 2010, following the rapid departure of Daniel Berg, the chief technology officer, and then chief development officer Madhu Yarlagadda, [[Mark Gillett]], an [[operating partner]] at Silver Lake Partners, assumed the role of chief development officer, taking responsibility for development of Skype's client software, cloud services, and product management following a period of several months working closely with Joshua Silverman to drive the transformation of the business, and the acceleration of cross-platform and mobile product delivery.{{citation needed|date=January 2014}}

* With its newfound independence and under ownership, Skype's growth accelerated<ref>{{cite web |title=Skype is a real live growth company |website=[[Business Insider]] |date=9 August 2010 |url=http://www.businessinsider.com/chart-of-the-day-skype-is-a-real-live-growth-company-2010-8/ |access-date=9 August 2010}}</ref> and by 2010, [[Telegeography]] estimated that Skype accounted for 25 per cent of the world's international calling minutes. According to their research, the overall international calling market grew a tepid 5 to 6 per cent annually in 2010. "Skype, however, has seen a huge uptick in growth, particularly in the last two years."<ref>{{cite web |title=Report Finds Skype Now Accounts for About 25% of International Call Minutes |date=6 January 2011  |url=http://www.readwriteweb.com/archives/report_finds_skype_now_accounts_for_about_25_of_in.php/ |access-date=6 January 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110109064608/http://www.readwriteweb.com/archives/report_finds_skype_now_accounts_for_about_25_of_in.php |archive-date=9 January 2011}}</ref>

* On 9 August 2010, Skype filed with the [[United States Securities and Exchange Commission]] (SEC) to raise up to US$100&nbsp;million in an [[initial public offering]]. Sources reported that the company expected to raise at least US$1&nbsp;billion.<ref>{{cite web |title=Preliminary Prospectus dated 9 August 2010 |work=[[EDGAR]] |publisher=U.S. Securities and Exchange Commission |date=9 August 2010 |url=https://www.sec.gov/Archives/edgar/data/1498209/000119312510182561/ds1.htm |access-date=16 October 2010}}</ref> In October 2010, Skype announced the appointment of [[Tony Bates]] as CEO; Bates was a senior VP at [[Cisco]] and was responsible for its multibillion-dollar enterprise, commercial, and small business division.<ref>{{cite news |last=Savitz |first=Eric |title=Skype Names Cisco Systems Exec Tony Bates As New CEO |publisher=Barron's |date=4 October 2010 |url=http://blogs.barrons.com/techtraderdaily/2010/10/04/skype-names-cisco-systems-exec-tony-bates-as-new-ceo/tab/print/ |access-date=16 October 2010}}</ref> On 14 October 2010, Skype 5.0 for Windows was released with a number of improvements and feature additions, including a Facebook tab to allow users to SMS, chat with, or call their Facebook friends via Skype from the News Feed.<ref>{{cite web |title=Skype gets serious Facebook Integration upcoming IPO |publisher=Mashable.com |date=14 October 2010 |url=http://mashable.com/2010/10/14/skype-5-with-facebook/ |access-date=14 October 2010}}</ref> The "Search for Skype Users" option was omitted from this version.<ref>{{cite web |title=Search for Skype Users missing.. – Skype Community |publisher=Forum.skype.com |date=10 January 2011  |url=http://forum.skype.com/index.php?showtopic=784903 |access-date=11 May 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110929020855/http://forum.skype.com/index.php?showtopic=784903 |archive-date=29 September 2011}}</ref>

* On 14 January 2011, Skype acquired [[Qik]], a mobile video-sharing platform.<ref>{{cite news |last1=Leena |first1=Rao |title=Confirmed: Skype Buys Mobile Video Startup Qik |publisher=TechCrunch |date=6 January 2011 |url=https://techcrunch.com/2011/01/06/confirmed-skype-buys-mobile-video-startup-qik/ |access-date=5 March 2016}}</ref> In March 2011, Skype named Jonathan Chadwick as its new chief financial officer and confirmed that Mark Gillett would serve full-time as chief development and operating officer<ref>{{cite news |title=Skype Hires McAffee's Jonathan Chadwick and Silver Lake's Mark Gillett as it approaches IPO |publisher=bloomberg.com |date=23 March 2011 |last=Kharif |first=Olga |url=https://www.bloomberg.com/news/2011-03-23/skype-says-jonathan-chadwick-of-mcafee-joins-as-finance-chief.html |access-date=11 October 2011}}</ref> following the departure of chief financial and administrative officer Adrian Dillon.

===Microsoft subsidiary (2011–2025)===
[[File:CES 2012 - Skype Lounge (6764011261).jpg|thumb|200px|Skype lounge at [[CES 2012]]]]
* On 10 May 2011, [[Microsoft]] announced it had agreed to [[list of mergers and acquisitions by Microsoft|acquire]] Skype for $8.5&nbsp;billion.<ref>{{cite web |last=Swisher |first=Kara |author-link=Kara Swisher |title=Microsoft to Announce Skype Acquisition Early Tomorrow Morning &#124; Kara Swisher &#124; BoomTown &#124; AllThingsD |publisher=Kara.allthingsd.com |url=http://kara.allthingsd.com/20110509/microsoft-will-announce-acquistion-of-skype-tomorrow-morning/ |access-date=11 May 2011}}</ref> This marked a 300% increase in value for the company in the three years since the eBay write-down in October 2007. This constitutes Microsoft's second largest acquisition to date.<ref>{{cite news |title=Microsoft confirms $8.5bn Skype deal |newspaper=The Guardian |date=10 May 2011 |location=London |last=Halliday |first=Josh |url=https://www.theguardian.com/technology/2011/may/10/microsoft-confirms-skype-deal |access-date=10 May 2011}}</ref> It was announced that Skype will become a division within Microsoft, with Skype's former CEO [[Tony Bates]]&nbsp;—now its president—&nbsp;reporting to Microsoft CEO [[Steve Ballmer]].<ref>{{cite news |title=Microsoft Agrees to Buy Skype for $8.5 Billion to Add Web Calls |newspaper=Bloomberg |date=10 May 2011 |last1=Bass |first1=Dina |last2=MacMillan |first2=Douglas |last3=Galante |first3=Joseph |url=https://www.bloomberg.com/news/2011-05-10/microsoft-said-to-be-negotiating-purchase-of-internet-call-provider-skype.html |access-date=10 May 2011}}</ref> The price Microsoft agreed to pay for the company is 32 times Skype's operating profits.<ref name="FT-buyout"/> According to the ''[[Financial Times]]'' this raises fears of a new "tech bubble".<ref name="FT-buyout">{{cite web |title=Skype price raises fears of new tech bubble |publisher=[[Financial Times]] |date=10 May 2011 |url=http://www.ft.com/cms/s/2/2e142854-7b2a-11e0-9b06-00144feabdc0.html#axzz1LtCJH6ph |url-access=subscription |access-date=10 May 2011 |url-status=live |archive-url=https://ghostarchive.org/archive/20221211231211/https://www.ft.com/content/2e142854-7b2a-11e0-9b06-00144feabdc0#axzz1LtCJH6ph |archive-date=11 December 2022}}</ref> [[Ars Technica]] and the [[BBC]] have questioned the value for Microsoft in the purchase.<ref>{{cite news |title=Microsoft confirms takeover of Skype |publisher=BBC |date=10 May 2011 |url=https://www.bbc.co.uk/news/business-13343600 |access-date=10 May 2011}}</ref><ref name="Ars-buyout">{{cite web |title=WSJ: Microsoft to buy Skype for $7bn. Rest of world: for real? |publisher=ArsTechnica |date=10 May 2011 |url=https://arstechnica.com/microsoft/news/2011/05/wsj-microsoft-to-buy-skype-for-7bn-rest-of-world-for-real.ars |access-date=10 May 2011}}</ref> Microsoft's acquisition of Skype got EU approval on 7 October 2011.<ref>{{cite news |last=Dolor |first=Solon |title=Microsoft Skype Acquisition Expected To Conclude By October, No Rebranding Expected |newspaper=Social Barrel |date=22 July 2011 |url=http://socialbarrel.com/microsoft-skype-acquisition-expected-to-conclude-by-october-no-rebranding-expected/11612/ |access-date=25 July 2011}}</ref>

* In October 2012, one year after the closure of the Skype acquisition, the newly formed Skype Division took responsibility for Microsoft's other VoIP and Unified Communications product [[Microsoft Lync]].<ref>{{cite web |last=Donovan |first=Fred |title=Microsoft Links Lync & Skype |publisher=fierceenterprisecommunications.com |url=http://www.fierceenterprisecommunications.com/story/microsoft-links-lync-skype/2012-11-01 |access-date=11 December 2012}}</ref>

* On 11 July 2013, Microsoft's then-CEO Steve Ballmer announced a reorganization of Microsoft along functional lines and with four engineering groups each led by a senior leader.<ref name="Microsoft Reorg">{{cite web |title=One Microsoft: Company realigns to enable innovation at greater speed, efficiency |website=[[Microsoft]] |url=http://www.microsoft.com/en-us/news/Press/2013/Jul13/07-11OneMicrosoft.aspx}}</ref> Microsoft's new Applications and Services Group, led by executive vice president [[Qi Lu (computer scientist)|Qi Lu]] was to include Skype along with Bing and Microsoft Office.<ref name="Qi Lu Profile">{{cite web |title=Qi Lu, Executive Vice President of Applications and Services Group |website=[[Microsoft]] |url=http://www.microsoft.com/en-us/news/exec/lu/default.aspx |url-status=dead |archive-url=https://web.archive.org/web/20130605115335/http://www.microsoft.com/en-us/news/exec/lu/default.aspx |archive-date=5 June 2013}}</ref>  Following a period where the strategy for the Skype business as a part of the broader Microsoft portfolios including Office 365 was established, and Skype's share of the international communications market rose to 36 percent (over 214&nbsp;billion minutes),<ref name="Skype traffic">{{cite web |title=Skype traffic continues to thrive |publisher=telegeography |url=https://www.telegeography.com/products/commsupdate/articles/2014/01/15/skype-traffic-continues-to-thrive/ |access-date=23 February 2019}}</ref> [[Mark Gillett]] announced that he would be leaving Microsoft to return to [[Silver Lake Partners|Silver Lake]].

* [[File:Skype logo (2019–present).svg|thumb|147x147px|Skype Logo 2019-2025]]In September 2016, after Qi Lu stepped down from Microsoft, Skype and Office became part of the Office Product Group, led by Rajesh Jha. The other part of the former Apps and Services Group (which includes Bing) became part of a new AI and Research Group.<ref>{{cite news |title=Internal email: Microsoft forms new 5,000-person AI division; key exec Qi Lu leaving after bike injury |date=29 September 2016 |work=GeekWire |language=en-US |url=https://www.geekwire.com/2016/internal-email-microsoft-forms-new-5000-person-ai-division-top-exec-qi-lu-leaving-bike-injury/ |access-date=2017-05-12}}</ref>

* Between 2020 and 2023, Skype lost daily users.<ref>{{cite web |last=Novet |first=Jordan |date=2 July 2023 |title=The rise and fall of Skype |website=CNBC |language=en |url=https://www.cnbc.com/2023/07/02/the-rise-and-fall-of-skype.html |access-date=2023-12-21 |url-status=live |archive-url=https://archive.today/20230703214206/https://www.cnbc.com/2023/07/02/the-rise-and-fall-of-skype.html |archive-date=2023-07-03}}</ref>
* On 28 February 2025, Microsoft announced Skype's retirement on 5 May 2025.<ref name="Skype Closure"/>

==Palo Alto office==
The Skype North American headquarters opened in early 2013, after the design was completed by San Francisco architect firm Blitz. Located in [[Palo Alto, California]], the space is designed to encourage interaction and spontaneity, while also introducing a sense of humor into the workplace. Fake lawn, cushions that look like boulders, open spaces, and high ceilings accommodate 250 employees in a {{convert|5000|m2|ft2}} building. The Palo Alto headquarters also houses a games room complete with a pool table and [[table football]] machine. The office's silver LEED Silver certification means that it received between 50 and 59 points for its environmentally friendly construction.<ref>{{cite web |title=Skype office space in Palo Alto |work=BangkokStartup.com |author=Andrey Talalaev |date=1 June 2013  |url=http://www.bangkokstartup.com/2013/06/01/skype-office-palo-alto/ |access-date=10 January 2014 |url-status=dead |archive-url=https://web.archive.org/web/20130609021514/http://www.bangkokstartup.com/2013/06/01/skype-office-palo-alto/ |archive-date=9 June 2013}}</ref><ref>{{cite web |title=Playful Work Environments |work=Mashable |author=Rebecca Hiscott |date=10 January 2014 |url=http://mashable.com/2014/01/09/playful-workspaces/ |access-date=10 January 2014}}</ref><ref>{{cite web |title=Come Picnic on the Fake Lawn at Skype's Palo Alto Offices |work=Curbed |publisher=[[Vox Media, Inc]] |author=Amy Schellenbaum |date=12 August 2013 |url=http://curbed.com/archives/2013/08/12/come-picnic-on-fake-rocks-lawn-at-skypes-palo-alto-offices.php |access-date=10 January 2014}}</ref>

==Legal issues==

===P2P licensing dispute lawsuit and IPO===
In its 2008 Annual Report, eBay admitted to an ongoing dispute between it and [[Joltid Ltd.]] over the licensing of its peer-to-peer "Global Index" technology in its application.<ref name="dispute">{{cite web |title=ebay 2008 Annual Report |publisher=ebay, Inc. |url=http://files.shareholder.com/downloads/ebay/965791422x0x281367/1B773A7C-8C14-45B8-915A-1716CA37DDA0/eBay_2008AR.pdf |access-date=7 October 2010}}</ref> It announced that it terminated a [[standstill agreement]], allowing either company to sue. On 1 April 2009, eBay filed with a UK court to settle the legal dispute. A few days later, eBay announced the planning of a [[initial public offering|public stock offering]] in 2010 to spin off Skype as a separate, publicly owned company.<ref name="spinoff"/> Some media outlets characterized the proposed sale and ongoing provision of Skype as being under threat because of the concurrent dispute.<ref>{{cite news |title=Skype under threat from eBay licence row |last=Arthur |first=Charles |date=1 August 2009 |work=The Guardian |location=London |url=https://www.theguardian.com/technology/2009/aug/01/ebay-case-threatens-skype-shutdown |access-date=31 July 2009}}</ref><ref>{{cite news |title=Legal dispute threatens eBay's flotation of Skype |last=Quinn |first=James |date=30 July 2009 |publisher=The Telegraph |location=London |url=https://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/5942213/Legal-dispute-threatens-eBays-flotation-of-Skype.html |access-date=31 July 2009}}</ref>

On 1 September 2009, a group of investors led by [[Silver Lake Partners|Silver Lake]] bought 65% of Skype for $1.91&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=1910000000|start_year=2009}}}} in {{Inflation/year|US-GDP}}).<ref>{{cite news |date=1 September 2009 |publisher=Business Wire |title=eBay Inc. Signs Definitive Agreement to Sell Skype in Deal Valuing Communications Business at $2.75 Billion |url=http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20090901005931&newsLang=en |access-date=1 September 2009}}</ref><ref>{{cite web |title=The Social Network That Wasn't: Skype's new owners might make it the platform it always should have been |last=Gimein |first=Mark |publisher=The Big Money |date=1 September 2009 |url=http://www.thebigmoney.com/articles/money-trail/2009/09/01/social-network-wasnt}}</ref> This prompted Joltid to countersue eBay on 17 September 2009.<ref>{{cite news |date=17 September 2009 |publisher=Wall Street Journal |title=Skype Founders Balk at eBay Deal |last=Fowler |first=Geoffrey A.  |url=https://www.wsj.com/articles/SB125313063626017009 |access-date=17 July 2010 |url-status=live |archive-url=https://web.archive.org/web/20130521095825/http://online.wsj.com/article/SB125313063626017009.html |archive-date=21 May 2013}}</ref>

Both settled the simultaneous suits in November, resulting in Joltid's part-ownership of the newly formed Skype Limited. The final holding share were with Silver Lake reducing their share to 56%, Joltid entered at 14%, and eBay retained 30%.<ref>{{cite news |title=Skype settles lawsuit with founders |last=Lindsay |first=Alan |date=6 November 2009 |publisher=CompareBusinessProducts |url=http://www.comparebusinessproducts.com/blog/entryid/88/skype-settles-lawsuit-with-founders.aspx |access-date=17 November 2009}}</ref>

==Other intellectual property challenges==

===Streamcast lawsuit===
[[StreamCast Networks]] filed a complaint in U.S. District Court in Los Angeles, alleging theft of its peer-to-peer technology and violation of the "Racketeer Influenced and Corrupt Organizations" statute. The complaint, titled; StreamCast Networks Inc v. Skype Technologies, S.A., was filed on 20 January 2006 in Federal Court in the Central District of California and assigned Case Number, 2:2006cv00391. The $4.1&nbsp;billion lawsuit did not name Skype's parent company, eBay, when initially filed. Streamcast's lawsuit was subsequently amended on 22 May 2006 to include eBay and 21 other-party defendants.

In its lawsuit, Streamcast sought a worldwide injunction on the sale and marketing of eBay's Skype Internet voice communication products, as well as billions of dollars in unspecified damages. The lawsuit was finally dismissed in a decision filed on 19 January 2007.<ref>{{cite web |title=STREAMCAST NETWORKS, INC., Plaintiff, vs. SKYPE TECHNOLOGIES, S.A., et. al., Defendants |url=https://www.lalitigationlawyers.com/files/streamcast_networks__inc._v._skype_techs.__s.a.__547_f._sup.pdf |access-date=8 September 2010}}</ref>

===IDT lawsuit===
On 1 June 2006, [[Net2Phone]] (the Internet telephone unit of [[IDT Corp.]]) filed a lawsuit against eBay and Skype accusing the unit of infringing {{US patent|6108704}}, which was granted in 2000.<ref>{{cite news |title=Skype Under Attack |publisher=McGraw Hill |work=Business Week |date=6 June 2006 |author=Pallavi Gogoi |url=http://www.businessweek.com/bwdaily/dnflash/jun2006/nf2006066_9375.htm |url-status=dead |archive-url=https://web.archive.org/web/20060610062414/http://www.businessweek.com/bwdaily/dnflash/jun2006/nf2006066_9375.htm |archive-date=10 June 2006}}</ref> The lawsuit was settled between the parties in 2010.<ref>{{cite news |title=eBay, Skype, IDT, and Net2Phone Settle Lawsuits |url=https://www.digitaltrends.com/computing/ebay-skype-idt-and-net2phone-settle-lawsuits/ |access-date=8 September 2010}}</ref>

===GPL lawsuit===
In July 2007 Skype was found to be guilty by a German court of violating the [[GNU General Public License]] in one of its for-sale products, the SMC WSKP100.<ref>{{cite web |title=iTWire – Skype cops GPL violation conviction in German court |url=https://itwire.com/business-it-news/open-source/skype-cops-gpl-violation-conviction-in-german-court.html |url-status=live |archive-url=https://web.archive.org/web/20080120200413/http://www.itwire.com/content/view/13690/53/ |archive-date=20 January 2008}}</ref><ref>{{cite web |title=GPL violation by Skype re-affirmed by court |publisher=The H Open |date=2008 |url=http://www.h-online.com/open/news/item/GPL-violation-by-Skype-re-affirmed-by-court-735143.html}}</ref>

==Political issues==

===China 2005===
Skype was one of many companies (others include [[AOL]], [[Microsoft]], [[Yahoo]], [[Cisco]]) which cooperate with the Chinese government in implementing a system of [[Internet censorship in mainland China]]. Critics of such policies argue that it is [[wrong]] for companies to profit from censorship and restrictions on [[freedom of the press]] and [[freedom of speech]]. Human rights advocates such as [[Human Rights Watch]] and media groups such as [[Reporters Without Borders]] speculate that if companies stopped contributing to the authorities' censorship efforts, the government could be pressured to change.<ref>{{cite web |title=Skype uses peer-pressure defense to explain China text censorship |publisher=The Register |url=https://www.theregister.co.uk/2006/04/20/skype_china_censorship_row |access-date=18 June 2006}}</ref>

Niklas Zennström, then chief executive of Skype, told reporters that its joint venture partner in China was operated in compliance with domestic law. "[[TOM Online]] had implemented a text filter, which is what everyone else in that market is doing," said Zennström. "Those are the regulations," he said. "I may like or not like the laws and regulations to operate businesses in the UK or Germany or the US, but if I do business there I choose to comply with those laws and regulations. I can try to lobby to change them, but I need to comply with them. China in that way is not different."<ref>{{cite news |title=Skype says texts are censored by China |publisher=Financial Times |work=FT.com |date=18 April 2006 |url=http://www.ft.com/cms/s/875630d4-cef9-11da-925d-0000779e2340.html |url-access=subscription |access-date=19 September 2007 |url-status=live |archive-url=https://ghostarchive.org/archive/20221211231227/https://www.ft.com/content/875630d4-cef9-11da-925d-0000779e2340 |archive-date=11 December 2022}}</ref>

===France 2005===
In September 2005, the French [[Ministry of Higher Education and Research|Ministry of Research]], acting on advice from the General Secretariat of National Defence, issued an official disapproval of the use of Skype in public research and higher education; some services are interpreting this decision as an outright ban. The exact reasons for the decision were not given.

===United States, CALEA 2006===
In May 2006, the [[Federal Communications Commission]] (FCC) successfully applied the [[Communications Assistance for Law Enforcement Act]] to allow [[wiretapping]] on digital phone networks. Skype was not compliant with the Act, and stated that it does not plan to comply.<ref>{{cite web |title=Can Skype Keep Its Secrets? |url=http://www.voip-news.com/news/features/skype-calea-compliance-061206/ |url-status=dead |archive-url=https://web.archive.org/web/20070504020521/http://www.voip-news.com/news/features/skype-calea-compliance-061206/ |archive-date=4 May 2007}}</ref>

===United States, Transparency, and PRISM 2013===
Starting in November 2010, Skype has been participating in a U.S. Government spy program titled [[PRISM (surveillance program)|PRISM]], allowing the [[National Security Agency]] (NSA) unfettered access to people's chats and video and audio communications. However, it was not until February 2011 that the company was formally served with a directive to comply, signed by the attorney general.<ref>{{cite web |title=How Microsoft handed the NSA access to encrypted messages |work=World news |date=12 July 2013 |publisher=The Guardian |url=https://www.theguardian.com/world/2013/jul/11/microsoft-nsa-collaboration-user-data |access-date=4 September 2013}}</ref>

In March 2013, the company issued transparency reports.<ref>{{cite web |title=Microsoft 2012 Law Enforcement Requests Report |website=[[Microsoft]] |url=https://www.microsoft.com/about/corporatecitizenship/en-us/reporting/transparency/}}</ref> confirming long held beliefs that Skype responds to requests from governments. Microsoft's General Counsel wrote to the US Attorney General, outlining the company's concerns in July 2013 in a<ref>{{cite web |title=Blog from Brad Smith including a copy of the letter to the US attorney |date=29 May 2020 |url=http://blogs.technet.com/b/microsoft_on_the_issues/archive/2013/07/16/responding-to-government-legal-demands-for-customer-data.aspx}}</ref> blog from Brad Smith including a copy of the letter to the US attorney.

==See also==
{{Portal bar|Luxembourg|Companies|Internet}}
* [[List of Skype features]]

==References==
{{Reflist}}

==External links==
*[https://www.skype.com/ Skype.com]
*[https://preply.com/en/blog/skype-learning-and-rosetta-stone-all-pros-and-cons-you-should-know/ Skype Learning and Rosetta Stone: All Pros and Cons You Should Know] (2017; updated 3 August 2023)

{{Microsoft}}

[[Category:Companies based in Luxembourg City]]
[[Category:EBay acquisitions]]
[[Category:2003 establishments in Luxembourg]]
[[Category:2005 mergers and acquisitions]]
[[Category:2011 mergers and acquisitions]]
[[Category:Microsoft acquisitions]]
[[Category:Microsoft divisions]]
[[Category:Skype people]]
[[Category:Skype]]
[[Category:Software companies established in 2003]]
[[Category:Software companies of Luxembourg]]
[[Category:VoIP companies]]