Microsoft has announced its decision to shut down Skype, the once-dominant internet-based phone and video service that revolutionized communication in the mid-2000s. The company confirmed that Skype will no longer be accessible starting in May, advising users that their login information will soon be transferable to Microsoft Teams’ free tier. This move comes 14 years after Microsoft’s monumental acquisition of Skype for $8.5 billion in cash, which was the company’s largest purchase at the time. Following the acquisition, Microsoft seamlessly integrated Skype into its suite of products, including Office and the now-defunct mobile operating system, Windows Phone.
Jeff Teper, the president of Microsoft 365 collaborative apps and platforms, expressed gratitude for Skype’s role in shaping modern communication and facilitating countless significant moments. He emphasized Microsoft’s enthusiasm for the new opportunities that Teams will provide, affirming the company’s commitment to enabling users to stay connected in innovative ways.
Despite its initial popularity, Skype has faced a decline in recent years, particularly amidst the pandemic-induced surge in usage of competing platforms like Zoom, Google Meet, and Cisco Webex. Furthermore, Skype has encountered stiff competition from apps such as Apple’s FaceTime and Meta’s WhatsApp. Microsoft’s strategic focus on Teams, which offers similar services, has also contributed to Skype’s diminishing relevance.
Originating in Estonia in 2003, Skype quickly gained traction as a platform for making free international calls, a feature that was particularly appealing when traditional phone calls across borders were costly. Following its rapid rise, eBay acquired Skype in 2005 for $2.6 billion. However, eBay’s ownership was short-lived, leading to the sale of its majority stake in 2009 to an investor group for $1.9 billion. Subsequently, Microsoft took over Skype in 2011, further solidifying its presence in the communication technology landscape.
This comprehensive update includes additional context and recent developments regarding Skype’s impending shutdown. Stay informed with more news and newsletters by creating an account on CNN.com.
