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Skype’s downfall: How Microsoft’s $8.5 billion bet lost to mobile-first rivals

Article by Gadjo Sevilla  |  Feb 28, 2025
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Skype’s downfall: How Microsoft’s $8.5 billion bet lost to mobile-first rivals
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Mobile Messaging
Business Strategies & Trends
Technology
United States

The news: Microsoft announced that Skype will shut down May 5 and encouraged users to migrate to its free Teams app. 

The once-revolutionary service that allowed free internet calling failed to maintain relevance in the mobile and remote work eras during and after the COVID-19 pandemic, per CNBC.

Skype timeline:

  • Launched in 2003 by Janus Friis and Niklas Zennström, Skype quickly gained 54 million users by 2005.

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