Microsoft will officially mark the end of Skype era on May 5, shutting down the once-dominant video and voice calling service after 21 years. The company is directing users to switch to its free Teams app, which has now become its primary communication platform.
Launched in 2003, Skype quickly gained popularity in the 2000s by allowing people to make free internet calls instead of relying on costly phone services.
However, as mobile messaging apps and newer video call platforms emerged, Skype struggled to keep up. Even during the COVID-19 pandemic, when video conferencing surged, it failed to reclaim its dominance. Now, as Microsoft shifts its focus, the end of Skype signals the close of an era in digital communication.
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 pic.twitter.com/EZ2wJLOQ1a
— Skype (@Skype) February 28, 2025
“But we felt like now is the time because we can be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams,” Jeff Teper, president of Microsoft 365 apps, said in an interview with CNBC. He explained that by focusing on Teams, Microsoft can deliver new innovations more efficiently.
Sign into Teams with their Skype credentials
Microsoft will soon allow users to sign into Teams with their Skype credentials, automatically transferring contacts and chat history. The company will stop selling Skype subscriptions, but users with credits can continue using them on Teams.
“This is obviously a big, big moment for us, and we’re certainly very grateful in many ways,” Teper said. “Skype pioneered audio and video calling on the web for many, many people.”
Skype was founded in Estonia in 2003 by Janus Friis and Niklas Zennström, the creators of the file-sharing service Kazaa. The platform allowed users to make free calls over the internet, a concept that quickly caught on. By 2004, it had 11 million users.
Skype is shutting down on May 5, 2025 pic.twitter.com/VtJyk4aN93
— Dexerto (@Dexerto) February 28, 2025
In 2005, eBay acquired Skype for $2.6 billion, hoping to integrate it into its marketplace to facilitate buyer-seller communication. Under eBay’s ownership, Skype grew to 405 million users by 2008. However, after CEO Meg Whitman stepped down, new leadership questioned Skype’s value to eBay’s core business.
By 2009, eBay’s financial struggles led it to spin off Skype. Instead of going public as planned, Skype was sold to a group of investors, including Silver Lake, for $2.75 billion. Microsoft later acquired Skype in 2011 for $8.5 billion, promising to integrate it with products like Lync, Windows Live Messenger, and Xbox.
At the time, Skype had 170 million monthly users, and Microsoft CEO Steve Ballmer believed the service could reach “Microsoft and Skype together will bring together hundreds of millions or, as Tony said, billions of consumers and empower them to communicate in new and interesting ways.” However, it never hit that milestone.
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