REDMOND, Wash. — In a strategic shift, Microsoft has announced the end of its Skype service, which it acquired for $8.5 billion back in 2011.
Starting in May, the tech behemoth plans to phase out Skype and redirect users to Microsoft Teams, its advanced videoconferencing solution. Existing Skype accounts will remain active and can be seamlessly used to access Teams.
The move highlights Microsoft’s decision to focus its resources on Teams, which has steadily taken precedence over Skype in Microsoft’s service portfolio, reflecting evolving communication trends.
Skype, initially launched in 2003 by engineers in Tallinn, Estonia, revolutionized telecommunications by facilitating internet-based calling. Its capabilities expanded significantly after its acquisition by eBay in 2005, incorporating video communication.
At the time of Microsoft’s acquisition in 2011, Skype boasted a global user base of around 170 million, disclosed at the announcement by then-CEO Steve Ballmer.
He remarked on Skype’s widespread influence, indicating that “The Skype brand has become a verb, nearly synonymous with video and voice communications.”
Skype continued to be a cutting-edge platform in 2017, as evidenced by its use by the newly inaugurated President Donald Trump’s administration for press interactions with journalists around the country, beyond the confines of the White House press briefing room.