Microsoft announced that it will discontinue Skype, its 21-year-old calling and messaging service, in May 2025. The decision comes as the tech giant shifts focus to its Teams platform, which has become a preferred choice for businesses and individuals alike.
Jeff Teper, president of Microsoft 365 collaborative apps and platforms, confirmed the move in an interview, emphasizing that Microsoft aims to simplify its offerings and enhance innovation by consolidating communication services under Teams.
“We’ve learned a lot from Skype over the years that we’ve put into Teams,” Teper said. “But we felt like now is the time because we can be simpler for the market and our customer base, and we can deliver more innovation faster just by being focused on Teams.”
To ease the transition, Microsoft will allow Skype users to sign into Teams using their existing credentials. Contacts and chat histories will transfer automatically, ensuring minimal disruption. Skype credits will also remain usable within Teams, though monthly Skype subscriptions will be discontinued.
Launched in 2003 by Janus Friis and Niklas Zennström in Estonia, Skype revolutionized online communication by offering free voice and video calls. Its popularity surged in the early 2000s, attracting millions of users worldwide. By 2005, Skype had 54 million users, leading eBay to acquire it for $2.6 billion. However, eBay struggled to integrate Skype into its business model and sold it to an investor group led by Silver Lake in 2009.
Microsoft purchased Skype in 2011 for $8.5 billion, aiming to integrate it into its ecosystem. While Skype remained popular for years, its underlying technology was not optimized for mobile use, limiting its ability to compete with newer platforms. The rise of Zoom, Slack, and WhatsApp further diminished its market share, while Microsoft prioritized Teams, especially during the COVID-19 pandemic when demand for online business communication surged.
Microsoft’s decision to discontinue Skype reflects its long-term strategy to centralize communication services under Teams, which has grown significantly since its launch in 2017. The company is encouraging users to migrate as soon as possible, promising a seamless transition.
Over the next few days, users will receive notifications guiding them through the migration process. Microsoft has also assured them that they will be able to export their data before Skype is officially shut down.
The announcement marks the end of an era for Skype, which once led the way in online communication. While its influence shaped the industry, Microsoft’s focus on Teams signals a new chapter in digital collaboration.
