By Bitvision
Once upon a time, a revolutionary app emerged in the golden age of the internet. It was called Skype, and it promised something magical—free calls across the globe. No more overpriced phone bills, no more long-distance woes. Just a click, and boom, you were connected.
The world cheered, businesses thrived, families reunited, and love blossomed across borders, all thanks to Skype. But, like many great legends, this one met a tragic end. Come May 5, Skype will officially vanish into the tech graveyard.
The Wizards Behind Skype
Every great tale has its masterminds, and Skype had two—Niklas Zennstrom and Janus Friis, a Swedish-Danish duo with a knack for digital disruption. They set up their lair in Estonia, known for its wizard-like programmers. Their spell? A sleek, powerful VoIP system that lets people talk for free.
Skype was an instant hit. It felt futuristic, was convenient, and, most importantly, was cheap. But behind the dazzling success, there was a tiny little problem—money. Skype was popular but not exactly profitable. It was like a famous musician with a massive fan base but no record deal.
The Wild Business Ride
Then came eBay in 2005, throwing a jaw-dropping $2.6 billion at Skype. The auction giant thought it had struck gold. Instead, it found itself holding a very expensive puzzle. What does an online auction house do with a calling app? No one knew. Not even eBay. Two years later, they admitted their mistake, wrote off $1.4 billion, and frantically searched for an escape route.
Enter Silver Lake and Andreessen Horowitz, the tech world’s sharpest dealmakers. In 2009, they scooped up 70% of Skype for $2.03 billion. They smelled opportunity. And they were right.
Then came the tech titan. Never one to shy away from an acquisition spree, Microsoft swooped in with a jaw-dropping $8.5 billion offer in 2011. What was their grand plan? No one knows. Perhaps they thought owning Skype would make them the kings of communication.
But soon, reality hit. By 2016, Microsoft was already pushing Skype aside for its new pet project—Teams. By 2021, Skype for Business was officially dead. Now, the entire platform is disappearing.
Who Laughed All the Way to the Bank?
Not Microsoft. They lost billions. But others made a killing:
- Silver Lake & Andreessen Horowitz: Bought Skype at a bargain and sold it for a fortune. That’s how legends are made.
- Niklas & Janus: Cashed out early. Then, it was reinvested in Klarna and Supercell (Clash of Clans, anyone?).
- Taavet Hinrikus: Skype’s first employee. Later, it founded Wise, which went public at a $12 billion valuation. Not bad for a first hire!
Lessons for Investors
Skype’s rise and fall is more than just a history lesson. It’s a playbook for spotting the next hidden tech gem. Here’s what to look for:
- Struggling but valuable tech – Just like Skype before Silver Lake stepped in.
- Industry shifts – Microsoft bet on Teams, not Skype. Spot the next big transition.
- Veteran-backed startups – The original Skype founders reinvested wisely. Follow the smart money.
Final Takeaway
We’ll be keeping a close eye out for Klarna’s IPO…
AI and crypto are shaping the next big tech wave. A struggling startup waits for a sharp investor to see its true worth. Somewhere out there
Skype’s farewell isn’t just the end of an era—it’s a reminder. The biggest fortunes aren’t made by chasing trends. They’re made by spotting value where others don’t. That’s where the real magic happens.
An opportunity at the cross-section of two of the biggest technological innovations of our lifetime – artificial intelligence and crypto.