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Microsoft Acquisition and Downfall
In 2011, Microsoft acquired Skype for $8.5 billion and integrated it into its core Windows, Xbox, and Outlook services. This propelled Skype to acquire 40% of the international call market share by 2014, yet this peak was fleeting. The following years brought in a surge of competition by the likes of WhatsApp, Telegram, Discord, Zoom, Google Meet, and Microsoft Teams. After the pandemic-driven boom subsided, Skype’s daily active user count hovered around 36 million, while Teams was able to grab almost 300 million, and that difference is quite telling. It only got worse as Microsoft poured most of its resources into Teams, overshadowing the once-eminent Skype, which had already been losing ground in the market, leading to its eventual retirement today, on May 5th, 2025.
How does this impact existing users?
Microsoft explains this change is part of an effort to streamline its services, focusing on Teams as its primary communication platform. They highlight that Team offers similar core functionalities to Skype, such as one-on-one calls, group calls, messaging, and file sharing, with additions such as hosting meetings, managing calendars, and community features.
So, if you’ve been part of the Skype ecosystem, Microsoft recommends transitioning to Teams, where your data will be automatically ported within minutes. If you choose not to migrate, you can also export your data. Microsoft is set to delete all Skype user data by January 2026, so it’s best to act now. If you wish to transfer your Skype credentials, contacts, and chats to Microsoft Teams, visit the official Skype website and proceed with the ‘Start using Teams’ option.
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