Microsoft has announced plans to discontinue Skype, its long-standing video calling and messaging service, by May 2025. In a surprising move, the company revealed that Skype users would need to transition to Microsoft Teams, the company’s flagship platform for communication and collaboration, in order to keep access to their chats and contacts.
The announcement, made in a post via X (formerly Twitter) on Friday, marks the end of an era for Skype, a service that has been part of everyday communication for millions of people across the globe since its launch in 2003. The message from Microsoft reads: “Starting in May 2025, Skype will no longer be available. Over the coming days you can sign in to Microsoft Teams Free with your Skype account to stay connected with all your chats and contacts. Thank you for being part of Skype.”
For many, Skype’s closure will feel like the end of a digital age. Once the go-to platform for video calling and instant messaging, Skype paved the way for many of the communication tools we now use in our daily lives.
Skype was founded in August 2003 by Niklas Zennström and Janus Friis, two entrepreneurs from Sweden and Denmark. The platform was revolutionary, allowing users to make voice and video calls over the internet for free, a feature that had never been widely available before. Skype quickly gained traction, attracting millions of users globally. By 2005, just two years after launch, Skype had reached 54 million registered users, making it one of the most popular communication services in the world.
In 2005, Skype was acquired by eBay for a hefty $2.6 billion. However, eBay’s ownership of Skype was not without challenges. The online marketplace giant struggled to find ways to fully integrate the service into its business model. In 2009, eBay sold a majority stake in Skype to an investor group led by Silver Lake, a private equity firm.
The following year, in 2011, Microsoft made a move to fully acquire Skype, purchasing the service for $8.5 billion. With this acquisition, Skype became a key part of Microsoft’s wider portfolio, integrated into the company’s suite of communication tools and products. Skype was embedded into Microsoft’s software, including its operating system Windows, and even integrated into its Office suite, where it was used for both personal and professional communication.
However, despite its early success, Skype faced increasing competition from other platforms, such as Zoom, WhatsApp, and even Microsoft’s own Teams, which gradually took over as the preferred platform for video calls and messaging in the business world.
As the digital landscape evolved, so did the ways in which people communicated. The rise of Zoom, especially during the COVID-19 pandemic, highlighted Skype’s inability to keep up with the competition. Meanwhile, Microsoft’s own Teams platform, initially designed as a business collaboration tool, began to dominate the corporate world. Over time, it also gained popularity for personal communication, largely due to its strong integration with Microsoft’s Office 365 suite, which is widely used by businesses and educational institutions.
Skype, on the other hand, struggled to remain relevant. It no longer held the same market share it once did, with users increasingly turning to WhatsApp for messaging and Zoom for video calls. As a result, Microsoft found itself in a position where it had to choose between continuing to invest in Skype or focusing on its more modern platform, Teams.
In an official statement explaining the decision, Microsoft noted that the way we communicate had evolved significantly over the years. “The way we communicate has evolved significantly over the years. From instant messaging to video calls, technology has continuously transformed how we connect with each other,” the company said. “In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub.”
The shift towards Microsoft Teams also reflects broader changes in the business world, where remote work and collaboration tools have become essential. Teams, unlike Skype, is designed for both communication and collaboration, allowing users to chat, hold video meetings, and share documents in one integrated platform. It has become the preferred choice for businesses and individuals looking for a more flexible and feature-rich communication tool.
For Skype users, the closure will bring both challenges and changes. The platform’s loyal base, which includes individuals and businesses alike, will have to transition to Microsoft Teams if they wish to keep their contacts and chat history. While Microsoft has assured Skype users that they can sign in to Teams using their Skype accounts, the transition may not be straightforward for everyone.
Microsoft has confirmed that starting in May 2025, Skype will no longer be available for use. The company also stated that it would no longer offer paid Skype features to new customers, including Skype credits and phone call subscriptions. However, existing paid Skype users will be able to continue their subscriptions until their next renewal period. Those who still have credits in their Skype accounts will have until May 2025 to use their balance.
For many, this move may feel like a loss, as Skype was one of the earliest platforms to provide free internet calls and brought people together across borders, enabling friends, families, and businesses to communicate at little or no cost.
Microsoft’s decision to shut down Skype and focus on Teams highlights the ever-changing nature of the tech industry. It is clear that Microsoft sees Teams as the future of communication, both for businesses and for personal use. In the coming years, Microsoft Teams is likely to expand further and continue to integrate more features that can cater to a wider audience.
Skype, while no longer leading the charge, will remain a significant part of tech history. It was the first of its kind, and for many people, it was the platform that made internet calls possible. However, the digital world is constantly evolving, and as communication tools become more sophisticated, platforms like Teams are positioned to take centre stage.
