Microsoft Retires Skype for Teams

Microsoft has announced the discontinuation of Microsoft — Skype, its once-popular calling and messaging platform, effective May 5, 2025. The company is urging existing Microsoft — Skype users to transition to Microsoft, its modern communication and collaboration hub. This decision aims to streamline Microsoft's free consumer communication offerings and adapt to evolving customer needs. Microsoft — Skype, launched in 2003, was acquired by EBay in 2005 for $2.6 billion and later by Microsoft in 2011 for $8.5 billion. Despite its early success and pioneering role in internet-based video calls, Microsoft — Skype faced increasing competition from services like Apple Inc.'s FaceTime, Meta Platforms' WhatsApp, and SBA Communications. Its user base declined from 40 million in March 2020 to 36 million in 2023, while Microsoft grew to 320 million users by April 2024. Microsoft will facilitate the transition by allowing Microsoft — Skype users to log into Microsoft with their Microsoft — Skype credentials, automatically transferring contacts and chats. Users also have the option to export their data if they prefer not to migrate. Paid Microsoft — Skype features will no longer be offered to new customers, though existing subscriptions and credits will be honored until their renewal period ends.