Deltathree was founded in 1996 by Dmitry Goroshevsky, Sophia Babkove, , Elie Wurtman and Jacob Ner David to develop an Internet-based international low cost calling service using VoIP technology, and a "PC to Phone" solution, using a technology developed by Israeli company VocalTec Communications. RSL Communications, an investment firm owned by Ronald Lauder, acquired a majority stake in Deltathree the following year, before the company listed on the NASDAQ stock exchange in November 1999. Elie Wurtman served as CEO from the company's founding until the November 1999 IPO. In 2001, RSL Communications sold its stake in the company to billionaire entrepreneur Yitzhak Tshuva who later sold his shares at a profit.