I ran into problem this morning when I was trying to merge a Skype Account to hotmail account for one of my friends. The failure was due to the reason that he had merged his skype account with his yahoo account. In theory, Skype account can not be merged with more than one account for Microsoft account. The error message was not clear so I started looking for possible reason.
I took following steps to fix this problem.
- Log into your skype account - https://secure.skype.com/
- This takes you to the profile overview (If it doesn't, click on your username on the left top corner).
- Scroll the page down and look for Account Details as shown in the picture below -
- Click on Account Settings as highlighted in red.
- It will show the Linked Microsoft Account as well as Facebook if you have linked your Facebook account as shown below -
- Click on the "Unlink" as shown in the screenshot above to unlink skypoe from your Microsoft and Facebook Accounts.
- Now, you are ready to link your account with another Microsoft Account of your Choice.
More reading: SKYPE FORUM