Microsoft is shutting down Skype, the once-dominant internet phone and video service that defined communication in the mid-2000s.
Starting in May, Skype will no longer be operational, as announced on X by Microsoft. The company has advised users that they can soon transition to the free tier of Microsoft Teams using their existing Skype login details.
Fourteen years after its acquisition by Microsoft for $8.5 billion—a record purchase for the company at that time—Skype is being discontinued. Microsoft had integrated Skype into various products, including Office and the now-defunct Windows Phone OS.
“Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of this journey,” said Jeff Teper, president of Microsoft 365 collaborative apps and platforms, in a blog post.
“We’re excited about the new opportunities that Teams brings and are committed to helping you stay connected in new and meaningful ways.”
In recent times, Skype has seen a decline in its user base, overshadowed by a surge in other platforms like Zoom, Google Meet, and Cisco Webex during the pandemic.
The service has been outpaced by newer applications such as Apple’s FaceTime and Meta’s WhatsApp, while Microsoft has focused its resources on enhancing Teams, which provides similar functionalities.
Introduced in 2003 in Estonia, Skype revolutionized global communication by enabling free international calls, a significant benefit at a time when such calls were costly on traditional phone services.
Gaining rapid popularity, Skype was acquired by eBay in 2005 for $2.6 billion, but the venture failed to meet expectations, leading eBay to sell its 65% stake in Skype to a group of investors for $1.9 billion in 2009. Microsoft stepped in and purchased Skype in 2011.
