Microsoft Shuts Down Skype After 20 Years
Microsoft has announced that Skype, the once-popular internet-based phone and video service, will officially shut down in May 2025 after more than two decades in operation.
The company confirmed on X (formerly Twitter) that users will no longer be able to access Skype but can transition to Microsoft Teams’ free tier using their existing log-in credentials in the coming days.
Skype’s closure comes 14 years after Microsoft acquired the service for $8.5 billion in 2011—its biggest acquisition at the time. The tech giant later integrated Skype into its Office suite and Windows Phone, but the platform struggled to maintain dominance in the face of rising competition.
“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.”
Once a leader in online communication, Skype has lost ground over the years, even during the pandemic when video conferencing tools like Zoom, Google Meet, and Cisco Webex surged in popularity. Other platforms such as Apple’s FaceTime and Meta’s WhatsApp also contributed to Skype’s decline.
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Founded in Estonia in 2003, Skype revolutionized global communication by offering free international calls, a game-changer when traditional phone calls were costly. The platform quickly gained traction, leading eBay to acquire it for $2.6 billion in 2005. However, eBay later sold its 65% stake for $1.9 billion in 2009 before Microsoft took full ownership in 2011.
Despite efforts to modernize Skype, Microsoft has heavily invested in Teams, which offers similar features but with better integration for business and collaboration. As a result, Skype’s shutdown marks the end of an era for one of the pioneers of online communication.
