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Skype, which revolutionized online communication after launching in 2003, will be officially retired, Microsoft said in a blog post on Friday, Feb. 28. The final day Skype will be active is Monday, May 5.
The company is encouraging users to switch to Microsoft Teams, where they can log in with their Skype credentials to retain chats and contacts.
"During the transition period, Teams users can call and chat with Skype users and Skype users can do the same with Teams users," wrote Jeff Teper, Microsoft's president of collaborative apps and platforms. "This helps ensure you can stay connected with everyone, regardless of the platform you're using during this transition."
Skype users can move to Teams for free or export their Skype data before the shutdown. Paid Skype features will also be phased out, with subscriptions and calling credits ending after their next renewal period.
Founded by Niklas Zennström, Janus Friis, and a team of Estonian developers, Skype quickly gained traction. By 2004, it had 11 million registered users and eBay bought it in 2005 for $2.6 billion, CNBC reported.
Skype grew to 405 million users by 2008 before Microsoft acquired it in 2011 for $8.5 billion. While Microsoft originally integrated Skype into its products, it later put its engineering focus on Teams, which grew to 320 million users by 2023.
Skype's video chat dominance faded due to the rise of Apple's FaceTime and Zoom, which was mainly a business-oriented product before exploding in popularity during the COVID-19 pandemic. Free calling on internationally popular apps like WhatsApp and WeChat also provided significant competition to Skype.
The retirement of Skype comes as Microsoft raises the price of its Microsoft 365 bundle for the first time in a dozen years. The cost of Microsoft 365 Personal and Family plans is increasing by $3 per month, with existing subscribers seeing the adjustment at their next renewal.
Once officially phased out, Skype's dial pad will only be accessible from the Skype web portal or within Teams.
"Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of the journey," Teper wrote. "We also understand that change can be challenging and want you to know that we're here to support you every step of the way.
"We're excited about the new opportunities that Teams brings and are committed to helping you stay connected in new and meaningful ways."
You can click here to learn more about transitioning from Skype to Microsoft Teams.
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