What happened to Skype? -

Year	Event	Details
2003	Founding and Launch	Founded by Niklas Zennström and Janus Friis; developed by Estonian programmers; first beta released in August.
2004-05	Early Growth and eBay Acquisition	Reached 50M users; eBay bought Skype for $2.6B in September 2005; introduced SkypeOut for landline calls.
2005-06	Expansion and Video Calling	Version 2.0 Beta added video calls; hit 100M users in April 2006; launched Skypecasts for group calls.
2007-08	eBay Era Challenges	Privacy concerns in China (TOM-Skype); Skypecasts discontinued; leadership changes (Zennström/Friis left).
2009-10	Sale to Investors and Mobile Expansion	eBay sold 65% to Silver Lake for $1.9B; Zennström/Friis regained 14%; mobile apps launched (Android, iPhone).
2011	Microsoft Acquisition	Microsoft bought Skype for $8.5B; over 600M users; handled 40% of international calls; added Facebook integration.
2012-13	Microsoft Integration and Privacy Concerns	Replaced Windows Live Messenger; NSA/PRISM surveillance revealed (2013), damaging trust.
2014-16	Competition and Evolution	Peak market share (40%); faced competition from WhatsApp, Zoom; launched Skype for Business (2015).
2017-20	Adapting to New Realities	Added “Meet Now” feature (2020); 40M daily users in March 2020, later declined to 36M as Teams grew.
2025	Shutdown Announcement	Scheduled to shut down on May 5, 2025, ending 21-year run due to competition and focus on Microsoft Teams.

Category	Description	Impact/Significance
Technological Innovation	P2P architecture enabled scalable, high-quality calls; pioneered video calling and firewall traversal.	Set the standard for VoIP; made global communication accessible and affordable.
Ownership Changes	eBay acquisition ($2.6B, 2005); sold to investors ($1.9B, 2009); Microsoft purchase ($8.5B, 2011).	Reflected strategic shifts; Microsoft’s acquisition aimed to bolster its ecosystem but faced challenges.
Privacy and Security	PRISM surveillance (2013); TOM-Skype monitoring (2008); no end-to-end encryption or open-source code.	Damaged reputation; criticized by EFF (1/7 security score in 2014).
Cultural Impact	Popularized free internet calls; “Skype” became a verb for video/audio communication.	Bridged distances for personal and small business use; influenced modern communication tools.
Competition and Decline	Lost ground to WhatsApp, Zoom, Teams; Microsoft prioritized Teams over Skype.	Declined from 40% call market share; shutdown in 2025 marked end of relevance.
Legal and Patent Disputes	Joltid lawsuit (2009) over P2P tech forced eBay to settle with founders Zennström and Friis.	Reshaped ownership structure; highlighted value of Skype’s core technology.