The acquisition was completed on October 14, 2005. eBay announced its intention to acquire Skype in a cash and stock transaction totaling US $2.6 billion on September 12, 2005.
From Skype’s inception until the company’s acquisition by eBay, the company had secured over USD $20 million in venture capital funding, while operating with just over 200 employees. Skype’s registered user growth rate exceeded that of KaZaa, Hotmail, and ICQ over the initial 24-month period that each company launched its product. Within two years of the Skype beta product launch, the software had been downloaded over 205 million times and the user growth rate had climbed to an impressive 130,000 new users per day. Prior to the company’s $2.6 billion acquisition by eBay, announced in September 2005 and finalized in October 2005, the Skype network had grown to over 55 million registered users. Skype developed software that allowed people around the world to talk to each other for free.
Since the company launched its software product in August 2003, the word “Skype” became synonymous with free calls over the Internet.
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