Skype shutdown: Microsoft's billion-dollar bet fails to keep pace

Microsoft will retire Skype by May 2025, marking the end of a service that once dominated online communication. The decision reflects changing user preferences and competition from other platforms.

Rise and acquisitions

• Launched in 2003, Skype quickly gained traction with free voice calls over the internet.
• By 2005, it had 50 million users.
• eBay acquired it for $2.6 billion but failed to integrate it.
• A consortium including Andreessen Horowitz and technology investor Silver Lake took over Skype in 2009.
• In 2011, Microsoft bought Skype for $8.5 billion, outbidding Google and Facebook.

Internet’s reaction

People took to social media to share their views on Skype’s shutdown. While some called it inevitable, others recalled their experiences with the app.

An X user commented, “Skype had a 17-year head start and cracked under pressure in 2020. Its fumble during the pandemic will be studied for centuries.”


Streaming platform Discord posted on X, “Thank you for walking so we could run. RIP to the OG gaming chat app.”


Failure to adapt

Skype’s technology, designed for desktops, struggled in the smartphone era. Unlike cloud-based competitors such as instant messaging app, WhatsApp and Zoom, Skype relied on peer-to-peer connections, making it inefficient. Microsoft attempted a cloud transition, but Teams became the priority, especially during the remote work boom.

Microsoft said on Friday, "Skype has been an integral part of shaping modern communications. We are honoured to have been part of the journey."

Also Read: Skype to go offline on May 5; Microsoft urges transition to Teams

Strategic shift

Microsoft integrated Teams with Office 365, positioning it as the primary communication tool, sidelining Skype. The service will be phased out, with accounts and chats migrating to Teams. Skype’s telephony features, including landline and mobile calls, will be discontinued at that time.