Microsoft has announced the Skype shutdown in May 2025. The 21-year-old calling and messaging service will no longer be available. Users must transition to Microsoft Teams, the company’s primary communication platform.
Why Is Skype Shutting Down?
Microsoft acquired Skype in 2011 for $8.5 billion. However, competition from newer platforms made it difficult to maintain its dominance.
Jeff Teper, president of Microsoft 365, confirmed the decision in an interview with CNBC. He stated that Teams offers a better, more streamlined experience for users.
“We’ve learned a lot from Skype over the years that we’ve put into Teams. Now is the time to simplify for the market and deliver innovation faster,” Teper said.
Impact on Skype Users
With the Skype shutdown, Microsoft will discontinue monthly Skype subscriptions. However, users can still use existing Skype credits within Teams.
Skype users can sign into Teams using their Skype credentials. Their contacts and chats will transfer automatically. Additionally, Microsoft allows users to export their data before the shutdown.
Why Did Skype Decline?
Skype’s decline resulted from several factors:
- Outdated Technology – Skype was not optimized for smartphones, making it difficult to compete.
- Competition – Newer platforms like Zoom and Slack gained popularity.
- Corporate Focus on Teams – Microsoft prioritized Teams during the COVID-19 pandemic for business users.
A Look Back at Skype’s Legacy
Skype was founded in 2003 by Janus Friis and Niklas Zennström. By 2004, it had 11 million users. In 2005, eBay acquired Skype for $2.6 billion. The user base reached 405 million by 2008.
In 2009, eBay sold Skype to an investor group led by Silver Lake. In 2011, Microsoft purchased Skype but struggled to keep it relevant. Despite integration into Windows, Skype lost its appeal against modern alternatives.
What Should Users Do?
Microsoft urges users to migrate to Teams before the Skype shutdown. The transition ensures a smooth experience with enhanced features.
Skype’s impact on digital communication remains undeniable. However, as technology evolves, Teams is now Microsoft’s focus for the future.