Microsoft to Shut Down Skype, Shift Focus to Microsoft Teams

Microsoft has officially announced that it will be shutting down Skype, the internet-based communication platform for voice and video calls, on May 5, 2025. This decision is part of the company’s strategy to focus more on the development of Microsoft Teams.

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Intense Competition and Skype’s Declining Popularity

Skype was once the dominant communication service in the mid-2000s. However, its popularity began to decline, especially with the rise of applications like Zoom and Google Meet during the Covid-19 pandemic in 2020.

In a post on the platform X, Microsoft stated that Skype will no longer be available after May 2025. However, the company assured users that their login credentials would still be usable for accessing Microsoft Teams in the near future.

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Skype's Acquisition History and Its Long Journey

This decision comes 14 years after Microsoft acquired Skype for $8.5 billion, which at the time was the company’s largest acquisition. Since then, Skype has been integrated into various Microsoft products, including Office and the Windows Phone operating system, which had limited success in the market.

Jeff Teper, President of Collaborative Apps and Platforms for Microsoft 365, stated in a company blog post that Skype played a crucial role in shaping modern communication and had been part of many meaningful moments for users. He added that Microsoft is now more excited about the new opportunities offered by Teams and is committed to continuing to provide a more innovative communication experience.

In recent years, Skype’s popularity has continued to decline despite the pandemic boosting the use of video-based communication services. Competing products such as Zoom, Google Meet, and Cisco Webex have attracted more users. Additionally, Skype has faced stiff competition from applications like Apple’s FaceTime and Meta’s WhatsApp. Meanwhile, Microsoft has heavily invested in Teams, which offers many of the same features as Skype.

Skype was first launched in Estonia in 2003 and quickly gained attention from internet users by enabling free calls worldwide. At that time, international calls via traditional telephones were still relatively expensive.

Its popularity led eBay to acquire Skype in 2005 for $2.6 billion. However, the partnership did not go as expected, and eBay eventually sold 65% of its shares in Skype to an investor group for $1.9 billion in 2009. Two years later, Microsoft took over Skype with an acquisition worth $8.5 billion.

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