Microsoft is finally hanging up on its longtime calling and messaging app Skype, which it acquired 14 years ago, signifying the end of an era for one of the oldest internet communications apps.
For users, Skype will go offline on May 5, when Microsoft replaces it with a free version of Microsoft Teams. Teams has been Microsoft’s chosen successor for years, offering the same kinds of video calls and group meetings.
“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,” Jeff Teper, Microsoft’s president of collaborative apps and platforms, said in a statement.
As part of the move, Microsoft will not lay off any employees who worked on the app, a spokeswoman said.
Skype users will be able to transfer old account data to their new Teams account, including old chats and contacts, according to a company blog post.
Skype was founded by a group of Nordic entrepreneurs and first released in 2003. The online marketplace eBay acquired it two years later for $2.6 billion, before Microsoft bought it in 2011 for $8.5 billion, which was then its largest acquisition.
At its peak, around 2016, Skype had 300 million users. But its popularity waned over the years, usurped by rival messaging platforms like WhatsApp and professional workplace apps like Slack. As of 2023, Skype had just 36 million users.
Microsoft debuted Teams in 2016 and has grown it to become one of the industry’s most popular workplace platforms with more than 320 million users. Now, the company will double down on its investment.
Teams became Microsoft’s messaging platform of focus from nearly the moment it was released, after the company said it would phase out Skype for Business in 2017, which took effect four years later.
Skype users who had paid for credits would still have access to them until the next renewal period, the company said. Even after the platform shuts down in May, the Skype Dial Pad will be available to paid users within Teams.
