
Skype
What Happened
Skype launched in August 2003 out of Estonia, built by Niklas Zennström and Janus Friis on peer-to-peer technology originally developed for Kazaa. It let anyone make free internet calls — a radical idea when international long-distance was still billed by the minute.
Skype grew into a verb. 'Skype me' entered the vocabulary of remote families, international teams, and journalists reporting from war zones. At its peak, Skype had hundreds of millions of users and carried a meaningful percentage of the world's international call minutes.
eBay acquired Skype in 2005 for $2.6B, sold it to Silver Lake in 2009, and Microsoft bought it in 2011 for $8.5B — then the largest acquisition in Microsoft's history. What followed was a slow, painful decline: a forced rewrite away from peer-to-peer, a confused UI that changed every year, constant rebrands, and the rise of FaceTime, WhatsApp, Zoom, and eventually Microsoft's own Teams.
On February 28, 2025, Microsoft announced Skype would shut down on May 5, 2025. Users were nudged toward Microsoft Teams Free. Twenty-two years after it started letting strangers talk across the world for free, Skype logged off for the last time.