Skype had the following message on it's website which are followed by several updates that we will quote here.
"Hello everyone,
Apologies for the delay, but we can now update you on the Skype sign-on issue. As we continue to work hard at resolving the problem, we wanted to dispel some of the concerns that you may have. The Skype system has not crashed or been victim of a cyber attack. We love our customers too much to let that happen. This problem occurred because of a deficiency in an algorithm within Skype networking software. This controls the interaction between the user’s own Skype client and the rest of the Skype network.
Rest assured that everyone at Skype is working around the clock — from Tallinn to Luxembourg to San Jose — to resume normal service as quickly as possible."
The latest update so far from Skype on the outage is this:
"Everyone at Skype continues to work hard at resolving the current software issue. We are making good progress. We feel that we are on the right track to bring back services to normal.
We thank you for your continued support and are thinking of you every step of the way."