Microsoft (NASDAQ:MSFT) is officially retiring Skype in May 2025, marking the end of an era for the once-dominant calling and messaging app. The company, which acquired Skype for $8.5 billion in 2011, is now shifting users to its free Teams app instead.

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Skype, launched in 2003, was a game-changer in global communication, allowing free voice and video calls long before Zoom and WhatsApp existed. Many expected it to reclaim dominance during the pandemic, but competition from Zoom, Slack, and other platforms led to its decline, especially as mobile usability lagged behind rivals.

Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, said Jeff Teper, President of Microsoft's Collaborative Apps and Platforms.

To ease the transition, Skype users will soon be able to log in to Teams using their Skype credentials, with chats and contacts automatically transferring over. For now, Teams and Skype users can still call and message each other seamlessly.

However, Microsoft is discontinuing paid Skype features, including Skype Credit and call subscriptions for new customers, as part of its plan to streamline consumer communications under Teams.

We're excited about the new opportunities that Teams brings, Teper added, signaling Microsoft's focus on consolidating its communication platforms for the future.