Friis and Annus are credited with the idea of reducing the cost of voice calls by using a P2P protocol like that of Kazaa. The software was created by Estonians Ahti Heinla, Priit Kasesalu, Jaan Tallinn, and Toivo Annus. Skype was founded in 2003 by Niklas Zennström, from Sweden, and Janus Friis, from Denmark.

Dropping the final 'r' left the current title 'Skype', for which domain names were available. However, some of the domain names associated with 'Skyper' were already taken.

The name for the software is derived from 'Sky peer-to-peer', which was then abbreviated to 'Skyper'. As of February 2023, it was used by 36 million people each day. It became entirely powered by Microsoft-operated supernodes in May 2012 in 2017, it changed from a peer-to-peer service to a centralized Azure-based service. Skype originally featured a hybrid peer-to-peer and client–server system. As of 2011, most of the development team and 44% of all the division's employees were in Tallinn and Tartu, Estonia. In May 2011, Microsoft bought Skype for $8.5 billion and used it to replace their Windows Live Messenger. In September 2009, Silver Lake, Andreessen Horowitz, and the Canada Pension Plan Investment Board bought 65% of Skype for $1.9 billion from eBay, valuing the business at $2.92 billion. In September 2005, eBay acquired it for $2.6 billion. Skype was created by Niklas Zennström, Janus Friis, and four Estonian developers, and first released in August 2003. It is available on various desktop, mobile, and video game console platforms. It also has instant messaging, file transfer, debit-based calls to landline and mobile telephones (over traditional telephone networks), and other features. Skype ( / s k aɪ p/) is a proprietary telecommunications application operated by Skype Technologies, a division of Microsoft, best known for VoIP-based videotelephony, videoconferencing and voice calls. Videoconferencing, VoIP and Instant messaging

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