As Microsoft Corporation MSFT bids farewell to Skype today, May 5, the move marks not just the end of an internet era but a major turning point in the company's communication strategy — and for investors who believed in Microsoft back in 2011, when it acquired the platform, it's been a profitable ride.
What Happened: Microsoft is officially shutting down Skype after more than two decades of service, encouraging users to migrate to Microsoft Teams, its modern communication and collaboration platform.
Launched in 2003, Skype became a digital lifeline for families, friends and businesses worldwide. Its familiar ringtone and video call interface were once synonymous with global connectivity.
However, as mobile-first and cloud-native platforms gained popularity, Skype struggled to keep up.
Microsoft acquired Skype on May 10, 2011, for $8.5 billion, aiming to bolster its presence in the consumer and enterprise communication space. Over time, it became clear that Skype's aging architecture was ill-suited for the demands of modern, integrated digital workspaces.
With Skype's retirement, Microsoft is signaling that Teams is now the company’s unified communications platform going forward.
$1,000 Then, Nearly $22,000 Now: While Skype's story is ending, Microsoft's growth has only accelerated in the years since the acquisition.
If you had invested $1,000 in Microsoft stock on the day it acquired Skype in 2011, you'd now be sitting on about $21,972.71. That investment would have bought you roughly 50.48 shares, factoring in Microsoft's history of stock splits.
Microsoft's share price has soared over the past decade as it successfully pivoted to cloud computing, productivity software and enterprise services — a strategy that included, but ultimately evolved beyond, Skype.
In the past five years, the share prices of Microsoft have up by 135.69% and year-to-date, it has gained by 3.99%, according to the data from Benzinga Pro. During Friday's regular hours, Microsoft shares closed at $435.28.
What's Next for Users: Skype users don't need to panic. Microsoft has ensured that transitioning to Teams is simple. By logging into Microsoft Teams with the same credentials, users will find their old Skype messages and contacts automatically synced.
The new platform includes all the familiar features — one-on-one calls, group chats, messaging — plus additional tools like integrated calendars, file storage, and community channels.
For paid Skype users, services will continue until current billing cycles end, and Skype Numbers can still receive calls through Teams or the Skype web portal.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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