Video-conferencing website Skype is closing down, as owner Microsoft confirms it will be shutting the service in May.
Founded in 2003, the video and audio call company became a household name, boasting hundreds of millions of users at its peak.
However, tech giant Microsoft has confirmed it will be retiring the two-decade-old internet calling service on May 5, encouraging people to migrate to Teams instead.
Tech experts said the platform has struggled to keep up with easier-to-use and more reliable rivals such as Zoom and Salesforce’s Slack in recent years.
Skype will be shutting down in May
Reuters
Microsoft purchased Skype in 2011 for $8.5 billion after outbidding Google and Facebook, the largest deal for the company at the time.
The service had about 150 million monthly users when it was purchased; by 2020, that number had fallen to roughly 23 million, despite a brief resurgence during the pandemic.
President of Microsoft 365 collaborative apps and platforms Jeff Teper told CNBC: “We’ve learned a lot from Skype over the years that we’ve put into Teams as we’ve evolved teams over the last seven to eight years.
“But we felt like now is the time because we can be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams.”
Microsoft CEO Steve Ballmer (L) shakes hands with Skype CEO Tony Bates following the acquisition in 2011
Getty
Skype has become the latest in a series of big investments that Microsoft has closed down, including =the Internet Explorer web browser and its Windows Phone.
Other big tech firms have also struggled with online communication tools, with Google making several attempts through apps including Hangouts and Duo.
Teper added: “This is obviously a big, big moment for us, and we’re certainly very grateful in many ways. Skype pioneered audio and video calling on the web for many, many people.
“I think a good write-up of the history of the thing would mark the shift to mobile and cloud as a significant change in the communications category.”
Microsoft said skype users will be able to log into Teams for free on any supported device using their existing credentials, with chats and contacts migrating automatically.
Microsoft VP of product Amit Fulay told TechCrunch: “We wanted to make sure that during this transition, people aren’t losing their contacts, their memories.
“We want to make sure we preserve all the things people have shared. And if they choose to come to Teams, we’ll restore all of their contacts and data.”