In 2013, Microsoft officially retired its own Windows Live Messenger (MSN) and moved millions of users over to Skype. 3. The Shift to the Cloud
On May 10, 2011, Microsoft announced it would acquire Skype for $8.5 billion in cash—a massive deal that marked Microsoft's biggest acquisition at the time. did microsoft buy skype
Before Microsoft entered the picture, Skype already had a complicated history of ownership: In 2013, Microsoft officially retired its own Windows
Under CEO Steve Ballmer, Microsoft outbid tech giants like Facebook and Google to secure Skype. Before Microsoft entered the picture, Skype already had
Despite having a huge head start, Skype eventually lost ground to newcomers like and WhatsApp .
Launched in 2003 by Niklas Zennström and Janus Friis, Skype used peer-to-peer (P2P) technology to make international calling free.
On May 5, 2025 , Microsoft officially retired Skype. Users were encouraged to migrate to Microsoft Teams Free , which now serves as the primary communication tool for the Microsoft ecosystem. Summary of Key Milestones 2003 Skype is founded in Estonia. 2005 eBay buys Skype for $2.6 billion. 2011 Microsoft buys Skype for $8.5 billion. 2013 Windows Live Messenger is merged into Skype. 2017 Microsoft Teams launches, eventually overshadowing Skype. 2025 Skype is officially retired on May 5. Moving from Skype to Microsoft Teams Free