Skype Shuts Down: 7 Key Facts and Essential User Transition Guide

Skype Shuts Down: 7 Key Facts and Essential User Transition Guide

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Microsoft Officially Shuts Down Skype: 7 Key Facts and What Users Need to Know

Microsoft officially shut down Skype on May 5, 2025, marking the end of a 22-year journey that revolutionized internet communication for millions worldwide.

“Skype has played a vital role in transforming modern communication and facilitating countless significant interactions, and we feel privileged to have been part of that journey,” said Jeff Teper from Microsoft.

The Rise and Fall of a Communication Giant

1. Launch and Early Impact

Skype was launched in 2003 by Niklas Zennström and Janus Friis, introducing free internet-based voice and video calls. The platform quickly gained popularity, reaching over 300 million monthly users by the mid-2010s.

2. Ownership Changes

The service went through several ownership changes:

  • 2005: eBay acquired Skype for $2.6 billion
  • 2009: eBay sold a 70% stake to an investor group
  • 2011: Microsoft purchased Skype for $8.5 billion (its largest acquisition at the time)

3. Microsoft Integration

After Microsoft’s acquisition, Skype was integrated into various platforms including Xbox, Outlook, and Lync (later renamed Skype for Business), eventually replacing MSN/Windows Live Messenger as Microsoft’s primary consumer communication tool.

The Decline and Final Shutdown

4. Competition and Decline

With the rise of competing platforms like WhatsApp, Zoom, and FaceTime, Skype experienced a steady decline:

  • 40 million monthly active users in 2020
  • 36 million monthly active users in 2023

5. Shutdown and Transition

Microsoft announced the retirement of Skype on February 28, 2025, with the final shutdown occurring on May 5, 2025. The company is shifting focus to Microsoft Teams, which offers similar features with enhanced tools for both personal and business use.

Skype’s Legacy and Next Steps

6. Legacy and Influence

Skype transformed global communication by making voice and video calls freely accessible to millions, playing a significant role in the development of online interaction before newer platforms emerged.

7. Next Steps for Users

Skype users can:

  • Transfer their data and contacts to Microsoft Teams
  • Download their Skype data before it’s deleted

Teams provides comparable features with added business tools.

About the Author: Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning University of Technology China.

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