Microsoft is making the decision to shut down the video-calling service Skype, which was acquired for $8.5 billion in 2011.
What we’re watching: The tech giant announced that Skype will be retired in May, with some of its services transitioning to Microsoft Teams, the company’s primary videoconferencing platform. Skype users will have the option to use their existing accounts to access Teams.
Driving the news: The move to discontinue Skype is part of Microsoft’s longstanding focus on promoting Teams over Skype, representing a broader shift in online communication preferences.
- Skype, originally founded in 2003 by engineers in Tallinn, Estonia, was known for revolutionizing telephone calls by facilitating internet-based conversations rather than traditional landline communications. It evolved to include video calls following its acquisition by eBay in 2005.
- At the time of Microsoft’s purchase in 2011, Skype boasted approximately 170 million users worldwide, with then-CEO Steve Ballmer acknowledging its widespread recognition and influence in the realm of video and voice communications.
- Skype’s prominence persisted, with the service even being utilized by the administration of President Donald Trump in 2017 for engaging with journalists located remotely from the White House press briefing room.
