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Microsoft has announced that it will officially shut down Skype, the once-popular internet-based phone and video service, in May 2025.
The company confirmed the decision on X (formerly Twitter), stating that users will soon be able to access Microsoft Teams’ free tier using their Skype login credentials.
The move marks the end of an era for Skype, which revolutionized online communication in the early 2000s but has since struggled to compete with newer platforms.
Microsoft acquired Skype in 2011 for $8.5 billion, its largest acquisition at the time. The tech giant integrated the service into Office and Windows Phone, but despite these efforts, Skype’s relevance declined.
“Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honoured 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.“
Despite a brief resurgence during the pandemic, Skype has struggled to maintain its user base. The rise of Zoom, Google Meet, Cisco Webex, Apple’s FaceTime, and Meta’s WhatsApp has further diminished its market share.
Additionally, Microsoft has been focusing its resources on Teams, which offers similar services but is more tightly integrated with the company’s enterprise ecosystem.
Skype was launched in 2003 in Estonia and quickly became a go-to platform for free international calls, making it a game-changer at a time when long-distance phone charges were high. The company saw early success, leading to a $2.6 billion acquisition by eBay in 2005. However, the partnership failed, and in 2009, eBay sold a 65% stake in Skype to an investor group for $1.9 billion before Microsoft took over in 2011.
With Skype’s shutdown approaching, Microsoft is encouraging users to transition to Teams, which will now serve as the company’s flagship communication platform.
While some loyal Skype users may be disappointed, Microsoft is betting that Teams’ advanced features and enterprise-focused ecosystem will help fill the gap left behind.
As the curtain falls on Skype, its legacy as a pioneer of modern video and voice communication remains undeniable, even as newer platforms take center stage.
The post Microsoft to shut down Skype in May 2025, shifting users to Teams first appeared on 3News.
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