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Microsoft to Shut Down Skype After 2 Decades of Service

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REDMOND, USA — Microsoft is set to discontinue Skype, the once-dominant internet-based phone and video service.

This will mark the end of an era for a platform that helped revolutionise online communication in the early 2000s.

In a statement posted on X on Friday, February 28, 2025, Microsoft confirmed that Skype will “no longer be available” starting in May.

The company advised users that their log-in credentials would remain valid for accessing Microsoft Teams’ free tier “in the coming days.”

The decision to retire Skype comes 14 years after Microsoft acquired the service for $8.5 billion in 2011, making it the company’s largest acquisition at the time.

Since then, Microsoft has integrated Skype into several of its products, including its Office suite and the now-defunct Windows Phone.

A Declining Presence Amid Fierce Competition

Skype’s influence has waned in recent years, despite a surge in video conferencing during the pandemic that benefited competitors such as Zoom, Google Meet, and Cisco WebEx.

The platform has also faced increasing pressure from consumer-focused alternatives, including Apple’s FaceTime and Meta’s WhatsApp.

At the same time, Microsoft has been shifting its focus towards Teams, which offers many of the same services as Skype and is positioning itself as a more comprehensive communication and collaboration tool.

The Rise and Fall of Skype

Skype was founded in Estonia in 2003 and quickly gained global popularity for its free voice and video calls, an attractive alternative to costly international calling.

The platform’s success caught the attention of eBay, which acquired Skype in 2005 for $2.6 billion.

However, the integration proved unsuccessful, and eBay sold 65% of its stake in the company to an investor group for $1.9 billion in 2009.

Microsoft’s subsequent acquisition of Skype in 2011 was seen as a strategic move to strengthen its position in the digital communication space.

The service was embedded into Microsoft’s ecosystem, but its appeal gradually diminished as newer platforms emerged.

Microsoft has not provided further details on the shutdown, and the company did not immediately respond to a request for comment.

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