Microsoft is set to retire Skype, the pioneering video calling service, in May, according to an announcement made on X, formerly Twitter. The decision to end the service, once a household name and acquired by Microsoft in 2011, has triggered backlash from some users.
The software giant is encouraging users to transition to Microsoft Teams, a collaborative communication and workspace application. Skype, which became so ubiquitous that it was used as a verb, allowing people to say “I’ll Skype you,” was acquired by Microsoft for $8.5 billion.
Skype’s popularity has waned in recent years, superseded by competitors like FaceTime, WhatsApp, Zoom, and Slack.
Jeff Teper, president of Microsoft 360 collaborative apps and platforms, commented to CNBC, stating that the company is moving to Teams to “be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams.”
Not everyone is welcoming the change. One X user, Maphry, expressed concern that the change would be difficult for elderly users accustomed to the technology. Another user shared that they had used Skype for several years to communicate with a friend.
Skype, initially launched in 2003 by Niklas Zennström and Janus Friis, provided video conferencing, voice calls and messaging, and quickly became a leading platform. eBay acquired the service in 2005 for $2.6 billion, but later recorded a $1.4 billion write-down, acknowledging that the deal had “not performed as expected.” Microsoft later acquired the company.
In 2011, NPR’s Planet Money acknowledged that the growth was in smartphones and tablets, and in a market Microsoft was losing to competitors. At the time the company was losing money, a factor that explained the high acquisition cost.
Data shows that Skype had been losing users over time, dropping from approximately 40 million in March 2020 to 36 million in 2023.
