End Of An Era: Microsoft Confirms Skype Shutdown In May

Microsoft purchased Skype in 2011 for $8.5 billion, marking the company’s largest acquisition at the time, according to CNN.

Launched in 2003, the service once dominated internet calling by offering free global connectivity, but struggled to keep pace with rivals such as FaceTime, WhatsApp, and, most recently, Discord and Zoom.

“Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of the journey,” said president of Microsoft 365 collaborative apps and platforms Jeff Teper in a statement.

Skype’s ownership changed hands multiple times before Microsoft’s acquisition. In 2005, eBay purchased the voice-over-internet tool for $2.6 billion, but parted ways four years later by selling its majority stake to a separate investment group for $1.9 billion. That transaction set the stage for Microsoft to take over in 2011.

After the purchase, Microsoft integrated Skype with other services such as its Office suite and the now-discontinued Windows Phone platform. Despite that, the platform lagged behind in a landscape increasingly dominated by Apple’s FaceTime and Meta’s WhatsApp as users gravitated toward apps centered on mobile messaging and video calls.

Many organizations turned instead to tools that packaged conferencing, chat, and collaboration in one place. This broader shift contributed to Microsoft’s aggressive focus on Teams, which now offers what the company describes as “seamless file sharing” and expanded functionality that extends beyond basic voice or video calls.