Microsoft is shutting down Skype after more than two decades

Microsoft is officially discontinuing its long-running talking and messaging app Skype, which it acquired 14 years ago, marking the end of an era for one of the oldest internet communications tools.

Skype will "no longer be available" to use beginning in May, the company revealed on X, informing customers that their login information will be available on Microsoft Teams' free tier in the "coming days."

Skype's demise comes 14 years after Microsoft purchased the service for $8.5 billion in cash, the company's largest acquisition at the time. Microsoft integrated the service into its other products, including Office and the ill-fated mobile operating system Windows Phone.

“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, president of Microsoft 365 collaborative apps and platforms, said in a blog post. "We're excited about the new opportunities that Teams brings and are committed to helping you stay connected in new and meaningful ways."

A spokesman for Microsoft confirmed that no workers who worked on the app will be laid off as a result of the change.

Skype's popularity has waned in recent years, despite a pandemic surge that boosted other rival technologies such as Zoom, Google Meet, and Cisco WebEx. Skype has also experienced significant competition in the last decade and a half from programs such as Apple's FaceTime and Meta's WhatsApp. Additionally, Microsoft has been significantly investing on Teams, which provides many of the same capabilities.

Skype was created in Estonia in 2003 and soon gained popularity as a way to make free calls all over the world, which was a significant benefit given that international calling on regular phones was previously pricey. The service quickly gained popularity, prompting eBay to acquire it in 2005 for $2.6 billion. However, the relationship did not work out, and eBay sold its 65% ownership in Skype to an investment group for $1.9 billion in 2009, before Microsoft acquired it in 2011.

Skype reached its high of 300 million users around 2016.  By 2023, Skype had only 36 million users.

Skype users who have paid for credits will continue to have access to them until the next renewal term, according to the business. Even when the platform is shut down in May, premium customers will have access to the Skype Dial Pad within Teams.