01:32 PM EST, 02/28/2025 (MT Newswires) -- Microsoft ( MSFT ) said Friday that it will retire the Skype calling and messaging service in May to focus on its Teams offering.

The technology giant acquired Skype in 2011 for $8.5 billion in cash. Skype was founded in 2003.

The decision to retire the service comes as Microsoft ( MSFT ) looks to streamline its free consumer communications offerings so that it can "more easily adapt to customer needs," Jeff Teper, president of collaborative apps and platforms, said in a Friday blog post.

The Teams app has several features that are offered by Skype, along with other enhanced offerings like managing calendars and developing and joining communities for free. Skype will remain available until May 5

Teams is used by "hundreds of millions" of users, according to Teper. "In the past two years, the number of minutes spent in meetings by consumer users of Teams has grown (four times)," he wrote.

The company said it will no longer offer paid Skype features to new customers, including Skype Credit and subscriptions. Existing Skype subscription users will be able to use their Skype credits and subscriptions through the end of their next renewal period.

Late last month, Microsoft ( MSFT ) logged stronger-than-expected fiscal second-quarter results as demand for artificial intelligence helped boost its performance.

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