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.
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