Skype to Shut Down After Nearly 20 Years of Service

Microsoft has announced that it will shut down Skype, the pioneering internet-based phone and video service, marking the end of an era for a platform that once dominated online communications.

Starting in May, Skype will no longer be available for use, the company confirmed on social media platform X. However, Microsoft assured users that their existing Skype log-in credentials could be used on the free tier of Microsoft Teams in the “coming days.”

The closure comes 14 years after Microsoft acquired Skype for $8.5 billion in cash, which at the time was its largest-ever acquisition. Microsoft subsequently integrated Skype into its suite of products, including Office and the now-defunct Windows Phone operating system.

“Skype has played a significant role in modernizing communications and creating countless meaningful moments. We are grateful to have been part of this journey,” said Jeff Teper, President of Microsoft 365 Collaborative Apps and Platforms, in a blog post. “As we move forward, we are excited about the possibilities that Microsoft Teams offers and remain dedicated to helping people connect in new and meaningful ways.”

Skype, which launched in 2003 in Estonia, quickly gained popularity for its ability to provide free international calls—a valuable feature when traditional phone services charged high rates for such services. The platform’s success attracted eBay, which acquired Skype in 2005 for $2.6 billion. However, the partnership did not meet expectations, leading eBay to sell a 65% stake in Skype to an investor group for $1.9 billion in 2009, before Microsoft’s acquisition in 2011.

Despite a brief resurgence during the pandemic, Skype struggled to maintain its foothold in an increasingly competitive market. Rivals such as Zoom, Google Meet, and Cisco Webex surged ahead, while Apple's FaceTime and Meta's WhatsApp continued to attract users. Simultaneously, Microsoft’s strategic focus shifted towards Microsoft Teams, which not only offered video calling but also integrated a suite of collaboration tools tailored for businesses and remote teams.

With the integration of Skype’s features into Teams, Microsoft aims to provide a more cohesive and robust communication platform. For current Skype users, transitioning to Teams should offer familiar functionality with added benefits, ensuring that connections remain strong and seamless.