Microsoft confirmed Skype will shut down permanently on May 5, 2025, ending its 22-year history. The announcement came on February 28.
Users have about 60 days to transfer their data to Microsoft Teams or export it before the service goes offline.
Skype launched in 2003 by developers from Sweden, Denmark, and Estonia. It gained popularity by offering free international calls when traditional phone services charged high rates.
eBay bought Skype in 2005 for $2.6 billion (approximately SGD$3.5 billion). Microsoft later acquired it in May 2011 for $8.5 billion (approximately SGD$11.4 billion), Microsoft’s largest acquisition at that time.
Skype’s user base has declined as competitors like Zoom, Google Meet, WhatsApp, and FaceTime gained market share.
Microsoft offers Skype users two options:
- Move to Microsoft Teams for free using Skype credentials, with chats and contacts transferring automatically
- Export Skype data including chats, contacts, and call history
Microsoft Teams provides similar core features to Skype, such as one-on-one calls, group calls, messaging, and file sharing. Teams also offers additional capabilities for hosting meetings, managing calendars, and building communities.
Skype’s paid calling services, which allow calls to traditional phone numbers, will be discontinued. These features don’t have alternatives in Teams. Users will need to port their Skype phone numbers to other mobile carriers to keep using them.
Microsoft reports that time spent in meetings by consumer Teams users has quadrupled over the past two years.
This change follows Microsoft’s pattern of consolidating communication platforms and phasing out legacy products. In 2023, the company announced plans to discontinue Paint 3D and remove Cortana voice assistant and WordPad text editor with the Windows 11 24H2 update.
