Skype is going 'out of business' after 21 years. The popular communications service is closing after a two-decade cycle, leaving its imprint on the history of digital communication, as Microsoft announced.
HDN Newsroom
Microsoft announced on Friday, February 28, 2025, that the popular communication service Skype will shut down on May 5, after 21 years of presence.
Microsoft is urging users to switch to the free Teams app, which will replace Skype.
Skype emerged in the 2000s as a revolutionary platform that allowed users to communicate for free, bypassing phone companies. However, in the age of mobile devices it failed to maintain its momentum, while during the pandemic it did not experience much recovery. With the plethora of communication apps circulating today, many have forgotten about its existence.
"We've learned a lot from Skype over the years and integrated it into Teams. Now it's time to focus on one platform to simplify the user experience and innovate faster," Jeff Tipper, president of Microsoft 365, told CNBC.
In the coming days, Microsoft will allow users to sign in to Teams with their Skype credentials, while their contacts and chats will be transferred automatically. At the same time, data will be exported, while monthly Skype subscriptions will be removed. Users who have a balance will be able to use it in Teams.
"This is a very important moment for us. We are grateful that Skype has paved the way for online communication," Tipper added.
Skype had 11 million registered users in 2004. In 2005, eBay acquired the company for $2.6 billion. dollars, when users had already reached 54 million.
eBay's CEO at the time, Meg Whitman, had hoped Skype would boost transactions between sellers and buyers, but that strategy didn't work.
In 2009, in the midst of the financial crisis, eBay decided to disengage from Skype and originally planned to list it. Instead, he sold it to an investment group led by Silver Lake for $2.75 billion. dollars.
In 2011, Microsoft acquired Skype for $8.5 billion. Dollars. The company's then-CEO, Steve Ballmer, wanted to integrate it into key products like Lync, Windows Live Messenger, Windows Phone and Xbox consoles. Although Skype reached 170 million monthly users, it never reached the one billion active user mark.
With Microsoft's decision to focus on Teams, Skype is finally closing a 21-year operating cycle.
