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Microsoft to Retire Skype in 2025, Pivots Fully to Teams After 22-Year Run

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skype
skype

Microsoft will shutter Skype, its once-dominant communication platform, in May 2025, marking the end of a service that pioneered free global video calls and reshaped digital connectivity in the early 2000s.

The company announced the transition on X (formerly Twitter), directing users to migrate to Microsoft Teams, which will now absorb Skype’s remaining user base through shared login credentials.

Skype’s closure follows years of declining relevance as rivals like Zoom, Google Meet, and WhatsApp surged in popularity. Despite a pandemic-era spike in usage, Skype struggled to retain its foothold, overshadowed by Microsoft’s own Teams—a platform deeply integrated into the company’s enterprise software ecosystem. Jeff Teper, President of Microsoft 365 Collaborative Apps and Platforms, acknowledged Skype’s legacy in a blog post: “Skype helped define modern communication. Now, we’re focused on delivering even richer connections through Teams.”

Launched in 2003 by Estonian developers, Skype revolutionized international calling, slashing costs for millions. Its rise attracted eBay, which acquired it for $2.6 billion in 2005 before selling majority stakes after failed synergies. Microsoft’s $8.5 billion purchase in 2011—then its largest deal—aimed to bolster its mobile and Office offerings. Yet despite bundling Skype with Windows and Outlook, Microsoft prioritized Teams post-2017, aligning with corporate demand for workplace-focused tools.

The shift underscores Microsoft’s enterprise-first strategy. Teams, which offers video conferencing, chat, and file-sharing, has become a linchpin for businesses, schools, and governments. Free Teams users will now inherit Skype’s consumer base, though some loyalists lament the loss of Skype’s simplicity. “Skype was where I first video-called my family abroad,” said Nairobi-based user Grace Mwangi. “It’s bittersweet to see it go.”

Skype’s fate reflects tech’s relentless pace. Once a trailblazer, it couldn’t outflank nimbler competitors or Microsoft’s own pivot to cloud collaboration. Yet its legacy endures: it laid groundwork for today’s ubiquitous video calls, proving the world could connect across borders, for free. As screens go dark on Skype, its spirit lives on—in pixels, if not in name.

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