Skype shuts down: 7 key facts, and what users need to know

Microsoft officially shut down Skype on May 5, 2025, ending a service that once defined 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 decision marks the end of a 22-year journey that changed how people interacted online.

Here are 7 key facts, and what users need to know

1. Launch and early impact

Skype Launched in 2003 by Niklas Zennström and Janus Friis, introduced free internet-based voice and video calls, quickly growing in popularity and reaching over 300 million monthly users by the mid-2010s.

2. Ownership changes

In 2005, eBay acquired Skype for $2.6 billion to improve communication between buyers and sellers, but after the partnership failed to meet expectations, eBay sold a 70% stake in 2009 to an investor group led by Silver Lake Partners; Microsoft then purchased skype in 2011 for $8.5 billion, making it its largest acquisition at the time.

3. Microsoft integration

After the acquisition, Skype became a division of Microsoft and 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.

4. Competition and decline

With the rise of competing platforms such as WhatsApp, Zoom, FaceTime, and Microsoft Teams, Skype experienced a steady decline in users, with its monthly active users falling from 40 million in 2020 to 36 million in 2023.

5. Shutdown and transition

On February 28, 2025, Microsoft announced that Skype would be retired on 5 May 2025 to streamline its communication services and shift focus to Microsoft Teams, which offers similar features with enhanced tools for both personal and business use; while Skype for Business will continue temporarily, all free and paid Skype accounts are affected, and users are encouraged to migrate their chats and contacts to Teams using existing login credentials.

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 the widespread adoption of newer communication platforms.

7. Next steps for users

Users can transfer their data and contacts to Microsoft Teams or download their Skype data before it is deleted, as Teams provides comparable features such as messaging, voice and video calls, and file sharing, with added tools designed for business use