Microsoft has announced that it will be shutting down Skype, the internet-based phone and video service that was once a dominant player in digital communication.
The company confirmed on X that Skype will "no longer be available" starting in May, with users encouraged to transition to Microsoft Teams' free tier 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 its largest acquisition at the time. Over the years, Skype was integrated into Microsoft's ecosystem, including Office and the now-defunct Windows Phone.
However, its relevance has diminished due to increasing competition from services like Zoom, Google Meet, Cisco Webex, Apple's FaceTime, and Meta's WhatsApp. Even during the pandemic, which boosted many video conferencing platforms, Skype struggled to regain its former prominence.
"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," Jeff Teper, president of Microsoft 365 collaborative apps and platforms, said 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."
Skype was founded in Estonia in 2003 and quickly gained popularity as a way to make free calls worldwide, a major advantage at a time when international phone calls were costly. Its early success led eBay to acquire it in 2005 for $2.6 billion, but the partnership proved unsuccessful.
eBay sold a 65% stake in Skype to an investor group for $1.9 billion in 2009, before Microsoft fully acquired it two years later.
As Microsoft shifts its focus toward Teams, the company is ensuring a smooth transition for Skype users. However, the shutdown signifies the end of an iconic service that once revolutionized digital communication.
