Skype to Shut Down After 20 Years of Service
Microsoft to Shut Down Skype After Two Decades
Microsoft is officially shutting down Skype, the once-dominant internet-based phone and video service that revolutionized online communication in the mid-2000s.
Starting in May, Skype will “no longer be available,” the company confirmed on X, advising users that their login credentials can be used on Microsoft Teams’ free tier in the “coming days.”
This decision comes 14 years after Microsoft acquired Skype for $8.5 billion in cash—its largest purchase at the time. Over the years, Microsoft integrated Skype into its ecosystem, including Office and the now-defunct Windows Phone.
“Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of the 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.”
Despite a brief resurgence during the pandemic, Skype’s popularity has steadily declined, facing stiff competition from services like Zoom, Google Meet, Cisco Webex, Apple’s FaceTime, and Meta’s WhatsApp. Meanwhile, Microsoft has shifted its focus to Teams, which offers many of Skype’s core features.
Originally launched in 2003 in Estonia, Skype quickly became a go-to service for free international calls, a game-changer at a time when traditional international calling was costly. Its early success led to eBay acquiring it in 2005 for $2.6 billion. However, the partnership faltered, and in 2009, eBay sold its 65% stake to an investor group for $1.9 billion before Microsoft took full ownership in 2011.
With Skype’s official sunset approaching, Microsoft is steering users toward Teams as the next chapter in its communication platform.
