Microsoft is ending its free Skype video calling service, a decision that has sparked reactions from users. The company announced the move in a post on X, encouraging users to switch to Microsoft Teams.
The Skype logo is pictured at Skype headquarters in Luxembourg on May 10, 2011
Skype, which Microsoft acquired in 2011 for $8.5 billion, began as a pioneering voice-over-Internet protocol (VoIP) service. It became so popular that it entered the common lexicon. People would say, “I’ll Skype you.”
In recent years, Skype has faced increased competition from services like FaceTime, WhatsApp, Zoom, and Slack. Microsoft stated in a blog post that the decision to discontinue Skype was to improve their consumer communications offerings. Jeff Teper, president of Microsoft 360 collaborative apps and platforms, told CNBC that Microsoft had “learned a lot from Skype over the years. … But we felt like now is the time because we can be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams.”
There has been criticism regarding the change. One X user, Maphry, wrote, “This is shocking. There are so many elderly who are not happy to change technologies anymore, but are used to this one over decades to keep in touch with their loved ones. It will require a lot of effort (usually by their families) to bring them over to alternatives.” Another user said, “My best friend and I have long distance chatted with Skype several times a week for 5 years. This is actually so upsetting.”
Founded in 2003 by Niklas Zennström and Janus Friis, Skype initially allowed users to make voice calls and send messages. It was purchased by eBay in 2005 for $2.6 billion. However, two years later, eBay took a $1.4 billion write-down. In 2009, eBay sold its controlling interest to a group of investors, who then sold Skype to Microsoft. At the time, this was Microsoft’s largest acquisition.
Skype’s user base has gradually declined, dropping from approximately 40 million in March 2020 to 36 million in 2023.
