Microsoft has confirmed it will be shutting down Skype, the once-dominant internet-based phone and video service, in May.
In an announcement on X, the company assured users they would soon be able to access Microsoft Teams’ free tier using their Skype login credentials.
Skype’s closure comes 14 years after Microsoft acquired the platform for $8.5 billion in cash—its largest-ever purchase at the time. Since then, the tech giant has integrated Skype into various products, including Office and the now-defunct Windows Phone.
“Skype shaped modern communications and created countless meaningful moments, and we honor being part of its journey,” said Jeff Teper, Microsoft’s president of collaborative apps and platforms, in a blog post.
He added, “We’re excited about the new opportunities that Teams brings and remain committed to helping you stay connected in new and meaningful ways.”
A Changing Communications Landscape
Once the go-to platform for online calls, Skype’s influence has waned in recent years, despite a brief resurgence during the pandemic. The rise of competing services—including Zoom, Google Meet, and Cisco Webex—has further pushed Skype into the background. Meanwhile, Apple’s FaceTime and Meta’s WhatsApp have cemented their places as key players in the video calling space.
At the same time, Microsoft has been shifting its focus to Teams, which offers many of Skype’s features along with additional business-oriented tools.
A Legacy of Innovation
Skype launched in 2003 in Estonia and quickly attracted users as a free alternative to costly international phone calls. The service’s rapid growth led eBay to acquire it for $2.6 billion in 2005. However, the partnership was short-lived, and eBay sold a majority stake in Skype to an investor group for $1.9 billion in 2009.
Microsoft’s 2011 acquisition marked a significant investment in the future of digital communication. However, the company has struggled to maintain Skype’s relevance in an increasingly crowded market. With Microsoft now prioritizing Teams, Skype’s shutdown marks the end of an era for a platform that once revolutionized the way people connected across the globe.
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