Skype to Cease Operations After Two Decades

After two decades of operation, Microsoft is bringing an end to Skype, the once-dominant internet-based communication platform that revolutionized video and voice calling in the mid-2000s.

The tech giant confirmed on X that Skype will “no longer be available” from May onwards. Users were also informed that their existing credentials would soon be compatible with Microsoft Teams’ free version in the “coming days.”

The decision to discontinue Skype follows 14 years after Microsoft acquired the service in a landmark $8.5 billion cash deal, which was the company’s largest acquisition at the time. Over the years, Microsoft incorporated Skype into various products, including Office and its now-defunct Windows Phone operating system.

Despite experiencing a brief surge during the pandemic, Skype has struggled to maintain relevance amid stiff competition from services like Zoom, Google Meet, and Cisco WebEx. Over the last 15 years, additional rivals such as Apple’s FaceTime and Meta’s WhatsApp have further diminished its user base. Meanwhile, Microsoft has channeled significant resources into Teams, which provides many of the same functionalities.

Originally developed in Estonia, Skype debuted in 2003 and rapidly gained traction due to its ability to facilitate free global calls—a significant advantage at a time when international calling rates were steep. The platform's early success led to eBay acquiring it for $2.6 billion in 2005. However, the partnership proved unsuccessful, prompting eBay to offload 65% of its stake to an investor consortium for $1.9 billion in 2009. Microsoft later completed its purchase of Skype in 2011.