Microsoft (MSFT, Financial) has officially phased out Skype, transitioning its core features to Microsoft Teams. This shift marks the end of an era for Skype, which was founded in 2003 and became a leading remote communication tool globally. Microsoft Teams will now offer Skype's key functionalities like one-on-one and group calls, messaging, and file sharing. Teams also provides free features such as hosting meetings and managing calendars.
Despite having 1.95 billion registered users, Skype's active daily user count is projected to drop to just 27.8 million in 2024, a significant decline from 40 million in 2020. The widespread adoption of smartphones coupled with the rise of competitors like Zoom and Microsoft Teams during the COVID-19 pandemic heavily impacted Skype's user base. Microsoft acquired Skype in 2011 for $8.5 billion.
