Microsoft officially closed Skype in May 2025 and ended the service that once defined internet calls. The company, which bought Skype for $8.5 billion in 2011, is shifting users to Microsoft teams, a platform built with business collaboration in mind.
A report from XDA revealed that Microsoft has added messages to the latest Skype for Windows Preview. Keep calling and chatting with your team. “This message will be accompanied by a notification indicating that the number of user contacts has already been switched to the team.
This decision led to a mixed reaction. Some recall that in the early days of Skype, international telephone companies disrupt the telephone companies. Others see this as the latest example of Microsoft struggling to make the most of its mass acquisition.
A $8.5 billion bet that never pays off
Skype took off in the early 2000s as an easy way to connect with friends and family without paying long distance fees. eBay saw the possibility and grabbed it in 2005 for $2.6 billion. The deal flops and a few years later it was controlled by a group of investors led by Silverlake. Microsoft paid the top dollar in hopes that Skype would become the future of communication.
The plan didn’t really work. Microsoft has pushed Skype anywhere, bundling it in Windows, integrated it into Outlook, and added AI tools like Bing Chat. Nothing stuck.
The rise of better alternatives
The biggest problem with Skype was competition. By the time Microsoft realized what to do with it, new players had already taken over.
When the pandemic hit, Zoom became the go-to for video calls. WhatsApp has made group chat seamless. Slack Redefined Workplace Messaging. Even Microsoft’s own team has become a stronger alternative.
“Skype is primarily considered one-on-one,” said Jim Gaynor, vice president of research for Microsoft’s advisory firm instructions, in an interview with CNBC. It’s a difficult place to be when most people need tools built for group conversations.
Skype user numbers tell the story. Microsoft reported 40 million users a day in early 2020. That number has dropped to 36 million. Meanwhile, the team jumped to over 300 million users in 2021 from 250 million users.
It’s not gone yet
Skype hasn’t disappeared overnight. A Microsoft spokesperson confirmed that it is available to those who still use it. But it’s clear where things are heading, as the team is getting all the attention.
Jaan Tallinn, one of Skype’s founding engineers, still uses it as the default. “If people want to use other channels, I’m happy to follow,” he said.
Microsoft may not call it a failure, but watching Skype’s journey makes it difficult to see other things. Apps that changed online communications are now phased out and replaced by Microsoft’s built after the fact.
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