Microsoft Announces Retirement of Skype
Microsoft is preparing to retire its Skype platform after nearly twenty years, according to reports published on February 28, 2025. The tech giant plans to shift its focus to Microsoft Teams, its platform designed to compete with rivals like Slack and Zoom. ! Microsoft stock experienced early trading lows on Friday, February 28.
Microsoft shares dipped at the opening of the Wall Street trading session that day. However, shares recovered from earlier lows and were down 0.14 percent at $392 at 10:55 a.m. (EST).
Skype, launched in 2003, quickly became a popular method of connecting people around the world through the internet, allowing users to make audio and video calls. Microsoft acquired Skype in 2011 for $8.5 billion, after outbidding Google and Facebook.
“We are honored to have been part of the journey,” Microsoft stated on Friday, according to a news agency report. Microsoft also highlighted Skype’s pivotal role in shaping modern communication.
The planned closure of Skype, reportedly scheduled for May 5, 2025, will see Microsoft shift its resources to Microsoft Teams. Teams already has over 320 million active monthly users. The company has not disclosed recent user count for Skype.
To ease the transition, Microsoft will allow Skype users to log into Microsoft Teams for free using their same Skype credentials. Contacts and chats will be automatically transferred to the new platform, the report said.
This move follows Microsoft’s shutdown of Internet Explorer and Windows Phone and comes as the company aggressively integrates Teams with other Office applications to attract corporate users. This effort, especially during the global pandemic, has eaten into Skype’s market share, the report noted. While Skype had nearly 150 million monthly users when it was acquired, the number dropped to 23 million by 2020.
