Skype, launched in 2003, gained popularity for free global calls|Ivan Radic|CC BY 2.0
Microsoft is phasing out Skype—its once-dominant internet calling service—by May, ending its 21-year run.
The company will replace it with a free version of Microsoft Teams, its preferred video call and messaging platform. Users can transfer chats and contacts to Teams without losing chat history or contacts.
Why did Skype lose ground?
Microsoft bought the video calling app in 2011 for $8.5 billion but struggled against newer competitors like FaceTime, WhatsApp, and Zoom, especially during the pandemic. Frequent redesigns, reliability issues and missed calls frustrated users.
The tech giant tried repositioning Skype for workplace use, but Teams, built from scratch, became the preferred platform.
The rise and fall of Skype
Launched in 2003 in Estonia, the app gained popularity for free global calls. eBay bought it in 2005 for $2.6 billion but sold most of its stake before Microsoft’s acquisition.
Its user base peaked at over 300 million in 2016 but plummeted to 36 million by 2023. Its real-time translator, once groundbreaking, is now part of Microsoft’s broader AI efforts.