Microsoft to Discontinue Skype Service by May 2025

By Patons Ocira, Technology Correspondent
February 28, 2025

NEW YORK: - Microsoft has announced the impending closure of Skype, the once-iconic internet-based communication platform that revolutionized how people connected globally in the early 2000s. The company confirmed via its official X account that Skype will cease operations in May 2025, marking the end of an era for the service that pioneered free online calls and video chats.

In its statement, Microsoft encouraged Skype users to transition to Microsoft Teams, noting that existing Skype login credentials will be compatible with Teams’ free tier starting in the “coming days.” This shift signals a strategic pivot as Microsoft continues to consolidate its communication tools under the Teams umbrella, a platform that has seen significant investment and growth in recent years.

Skype’s journey began in 2003, when it was launched by founders Niklas Zennström and Janus Friis in Estonia. The service gained rapid traction by offering free voice calls over the internet at a time when international phone rates were prohibitively expensive. Its popularity soared, catching the attention of eBay, which acquired Skype in 2005 for $2.6 billion. The acquisition, however, proved unfruitful, and eBay sold a majority stake to a group of investors led by Silver Lake in 2009 for $1.9 billion [1].

Microsoft entered the picture in 2011, purchasing Skype for $8.5 billion—a record-breaking deal for the tech giant at the time [2]. The acquisition was seen as a bold move to bolster Microsoft’s presence in the consumer and enterprise communication space. Over the years, Skype was integrated into various Microsoft products, including Office and the now-defunct Windows Phone operating system. Yet, despite these efforts, Skype’s prominence waned amid fierce competition and evolving user preferences.

The rise of rivals such as Zoom, Google Meet, Cisco WebEx, Apple’s FaceTime, and Meta’s WhatsApp gradually eroded Skype’s market share. Even a temporary resurgence during the COVID-19 pandemic—when demand for virtual communication tools spiked—could not reverse its decline. Microsoft’s focus has instead shifted to Teams, which combines chat, video conferencing, and collaboration features tailored for both personal and professional use.

Industry analysts view Skype’s shutdown as a pragmatic decision. “Skype was a trailblazer, but the landscape has changed dramatically since its heyday,” said Sarah Lin, a technology analyst at Nile Research Group. “Microsoft’s investment in Teams reflects a unified strategy to compete in a crowded market.”

Microsoft has yet to provide detailed comments beyond its X post, and inquiries sent to the company’s press office by Nile Chronicles remained unanswered as of publication.

For millions of users, Skype’s discontinuation may evoke nostalgia for a time when its distinctive call ringtone was a hallmark of digital connection. As the May deadline approaches, the tech world bids farewell to a service that once defined long-distance communication.

References:
[1] Reuters. (2009, November 19). "EBay Sells Skype Stake to Investor Group for $1.9 Billion."
[2] Bloomberg. (2011, May 10). "Microsoft Agrees to Buy Skype for $8.5 Billion."