Microsoft to Shut Down Skype After Two Decades
Microsoft has announced that it will be shutting down Skype, the once-dominant internet-based calling and video service, after more than 20 years in operation.
In a statement shared on X, the company confirmed that Skype will “no longer be available” starting in May. However, users will be able to access Microsoft Teams’ free tier using their Skype log-in details in the coming days.
The decision marks the end of an era for Skype, which Microsoft acquired in 2011 for $8.5 billion in what was then its largest-ever purchase. Despite being integrated into various Microsoft products, including Office and the now-defunct Windows Phone, Skype has struggled to maintain relevance in an increasingly competitive market.
Jeff Teper, President of Microsoft 365 Collaborative Apps and Platforms, acknowledged Skype’s impact on digital communication. “Skype has played a crucial role in shaping modern communications and supporting countless meaningful moments. We’re honored to have been part of that journey,” he said in a blog post. He added that Microsoft is now focused on expanding Teams, which offers similar services.
Although Skype experienced a brief resurgence during the pandemic, it has faced growing competition from platforms such as Zoom, Google Meet, Cisco Webex, Apple’s FaceTime, and Meta’s WhatsApp. Meanwhile, Microsoft has prioritized investment in Teams, further diminishing Skype’s role.
Skype was initially launched in Estonia in 2003 and quickly became a popular tool for free international calls—an attractive alternative to expensive traditional phone rates. Its success led to eBay purchasing it for $2.6 billion in 2005, but the partnership struggled, leading eBay to sell a majority stake to an investor group in 2009. Microsoft then acquired Skype in 2011, but the service gradually lost its dominance in the video calling market.
As Microsoft shifts focus to Teams, Skype’s shutdown marks the end of one of the early pioneers of internet communication.
