Microsoft's apparently passing on $110 million Cyanogen funding round

Several weeks ago brought the news that Microsoft was considering investing in Cyanogen and their customized Android system CyanogenMod. That OS is installed on a few retail devices, including the OnePlus One and the Alcatel OneTouch Hero 2+, as well as being freely available to download and install on a wide range of Android devices. But it seems that the Microsoft's opting not to take part in this funding round.

According to Bloomberg:

"Microsoft Corp. decided not to invest after negotiations, although it may still be interested in a commercial deal to get its software onto Cyanogen's mobile operating system."

While Microsoft's appears to be not handing over millions of dollars to Cyanogen (they've got their own Windows Phone OS to invest in, after all), that doesn't mean that they're not done playing around in the Android sandbox. Microsoft has struck a deal to have OneDrive, OneNote,a and Skype preinstalled on the upcoming Samsung Galaxy S6, along with a spacious 115GB of OneDrive cloud storage space.

Source: Bloomberg; Thanks to KhawarN. for the tip

Derek Kessler is Special Projects Manager for Mobile Nations. He's been writing about tech since 2009, has far more phones than is considered humane, still carries a torch for Palm, and got a Tesla because it was the biggest gadget he could find. You can follow him on Twitter at @derekakessler.

112 Comments

That's good I guess
Cyanogen should avoid any agreements that require software to be installed/pre-packaged
That's probably what they did and why MS isn't considering investing anymore.
Microsoft probably would rather invest in Google to get on their good side.
I don't think Google needs investors.
Your right, Google is to superior to been seen with Microware. Cough cough, Microsoft...
What
Smh...Poorly executed joke mate...
Microsoft couple give Google a trillion dollars a year for the next decade and still not wind up in their good graces. They are the most petty corporation on the face of the globe.
Idk, snapchat is right up there in pettiness...
My guess would be that MS wants an ownership stake for its investment while Cyanogen would rather crowd source and not give up any ownership.
My guess is that the whole story regarding Microsoft investing in Cyanogen was an unsubstantiated rumor and it was likely never true.
Yes Cyanogen should avoid agreements that require more bundled software because the only reason people use Cyanogen is specifically to lose bundled software.
Not if they don't have Plan B if WP doesn't succeed.
They have no plan B. They are gonna keep pouring money like Xbox.
WP is it's own plan B. Look at all of the money MS gets from patent leasing to Android... that tech is largely due to research in building WP. This is a large part of the reason WP did not get support early on, if they could get money from selling phone development then there is little to no need to invest in making a product that people really used. They could be the next IBM and just rely on a large portfolio of patents to survive. The only reason to be pushing WP now is because they are realizing that the days of mass use of tablets, laptops, and desktops are numbered, and if they want to retain platform superiority then they need to move to the new platforms; wearables, phones, and home automation. They may have lost the phone war, but what they do with phone OSs will affect their success in wearables and automation, so it is still important. If you think about it, getting WP to be used by people IS the plan B.
Patent Licensing to Android being more profitable than their own platform is kind of the irony in the situation. That makes ANDROID their Plan B, not Windows Phone. The only profits Microsoft is making in Mobile, is from Android Patent Licenses. Additionally, Microsoft lost a lot of early adopter support for this platform becasue of the constant pivots and "new strategies," wasting people's money by giving decently new phones no upgrade path when they decided to basically start over again, and developing updates at a snails pace. Which they try to cover up by announcing features several months in advance and then giving tidbits here and there while they develop it. Also, a lot of us came to Windows Phone because we couldn't get an iPhone (or didn't want one) and were tired of waiting half a year for software updates, bug fixes, and security fixes. Microsoft told us it would be better on Windows Phone, and now it's actually worse than Android (at least Samsung, Moto, LG, and HTC) for updates. That was a huge deal back then, and they sorta tried a bit, but the carriers clearly won that battle.
WP is already dying ... just waiting for last nail in coffin
So are you.
Just because you don't know how to use Windows Phone means its dying. LOL!
market is shrinking significantly LOL! WP is so limited with features there is nothing one cant use
Cortana being the lastest "Windows Phone feature" to jump overseas to Google and Apple nations is a good indication, through....
Cortana can't run apps that aren't available, or provide device/software features that don't exist on the platform. I really... couldn't give two shits about Cortana. I need the platform to provide the features and the software that I need to get stuff done.
Shut up! It's just taking off as we speak
taking off? LOL
Yep! Investingin CM look like a dirty method for a company like MS.
They are strong should face Android head on with WP instead of adopting these below standard method.
This is indeed a good decision.
I don't think it is a dirty method. If Microsoft could strike a deal with Apple to have OneDrive, Bing and Maps as iOS default, they will. They should, is my opinion.
Sounds Desp for some reason..
Seems desper
Desperer
Sounds cheap like my ex gf
Nailed it!
Me too!
She might be thinking same about you
Some good news :)
There is only news. There are no good news or bad news. Believe in dragon warrior. - Master Oogway
That's good. I've heard and read very negative things about Cyanogen's CEO. It's an up and coming company, run by an egoistic CEO. Microsoft shouldn't associate with them.
Like Google's CEO is any better
Was Microsoft preparing to give Google $110 million?
Did Google need it?
Like Steve Ballmer wasn't horrible already as well....
:@
So relieved.. Invest in WP not other OSes that's the way to go
I dont want to, I'll even take your lil Cortana to android and ios. why should I invest on WP?
Because you like and support Windows.
Yea, I like and support prosthetic limbs too. But, I have all my limbs so I'd never buy one.
Maybe they can get some funding from Pebble...
To break the android market maybe...
Microsoft can't survive without their devices on Google's platforms. Google is just being a good neighbor and helping Microsoft out.
Wait what. How is Google being a good neighbor..?
Their like Statefarm.
You have to sing their jingle song first
Yeah the neighbour that pulled the you tube app by MS. Great neighbour indeed /S
Ohh yeah....thats y we don't have many official google apps(including youtube)...And microsoft is a very "bad" neighbour cus it is releasing all of its unique features to all major platforms :/
'Google helping microsoft out' get ur knowledge checked...according to u if it is fine then get ur brains checked
Your def right, Microsoft needs to learn to get along with others. They make all WP users seem more snobbier than iPhone users.
IPhone users are snobbier, yes.
WP users are superior.
Get it right.
This is a childs mentality. All my friends use iPhones and they are not snobby. Its just a damn cellphone man get a life.
Guess that's true.. https://www.youtube.com/watch?v=KHZ8ek-6ccc I do love Apple engineers on Macbook, still laughing and childish lol
Its just a damn "eaten apple" logo man. Get a life ;)
Try telling them that what they own is just a cellphone :-) they will say "even though you think it is just a cellphone, it is actually iPhone" :-( Unfortunately, been there and done that.
It is the Jesus Phone. Always has been, always will be.
@Qiyamata. Are you able to post something that is not stupid and ridiculous? I'm hoping you are just being sarcastic.
Don't feed the troll.
Haha lol, this man got two things wrong, The company which owns WP is MICROSOFT not Google, and ANDROID is owned by GOOGLE not MICROSOFT, don't make him a troll for not getting the names right ;)
Yeah didn't make sense. It deters their ability to work on Windows10 and invest in a platform controlled mainly by Google. Good call. :)
Cyanigen isn't controlled by Google at all. . .
but android is, and cyanogenmod is an android os
No, it's not Android. Cyanogenmod is based on AOSP, which is missing a lot of the things that people associated with Android.
But AOSP is still Android and although anyone can update the source code and kernel etc the openness of Android. Google still rules them all Posted via the Windows Central App for Android
they really need to focus on they own OS for a while... I'm not hating, I'm just saying...
I think Microsoft is focusing on W10 a lot. They just keep it low. Like the HoloLens and the Surface Hub. Didn't expect those. If they don't then those new devices are just another failure product. OS is the big thing! Always have been.
yeah that's true... well I hope they get windows 10 up an run I Ng well an bring a worthy flagship to run it on... holding onto my 1020 until the end of this year
Google is just a search engine, can't compare with calculator.
Microsoft is a COMPUTER but
Need time and slow too :/
HELL YEAH GOOGLE! DONT U HAVE ANY DEVELOPER TO MAKE AN APPS FOR WINDOWS PLATFORM? You r worst than calculator
That's some atrocious English grammar.
@Qiyamata Looks like we have got a google fandroid here
We do
Go back from where you came troll
Has anyone even been far even as decided?
Good, they don't need to invest into Android. Focus on WP
Microsoft will sell out to Google soon just to survive. And I know Google would purchase them and keep selling wp's because they love to help no name brand company's.
LOL Joke of the year.
More like Joke of the Minute.
Hahahahaha...
Why would a company that is 34 in the fortune 500 list with a 77.8 billion dollar yearly revenue sell out to a company that's 46 in the list with a 60.6 billion dollar revenue? Keep dreaming.
Chances are better the other way round. Google could easily be bought be Microsoft or Apple.
Troll alert!!!
Blinded troll alert!!!
Google still makes half the profit of Microsoft. Half.
right. that profit earned growth will hurt google soon. they will begin to go into losses
2nd highest market cap and u think company is drowning just bcoz of windows phone. lol. Microsoft earns good amount from cloud too. see their earnings till next year.
Guessing they'd get the offers similar to Samsung when they officially launch later on
Lol
Any pre installed software will be considered bloatware. Don't do it MS!
Why are people replying to this qioto guy ? Stay classy.
They haven't realized that he's a troll yet.
Yup. Realized that.
Microsoft with help of good games and apps releasing cN win mote customers. Windows 10 for phones can win customers. Lumia in India is gaining confidence.
omg my tip got accepted. :0 i love this place :D
Oh congrats, got to see you here.
Thanks for the Info. Poor proof-reading ruins the article however. Especially double negatives in final sentence that changes the meaning intended by the writer.
Microsoft probably asked cyanogen to bake in all the Microsoft services into their OS. Cyanogen probably said no way since we have other investors as well. Posted via the Windows Central App
Good now get back to perfecting your own good OS!!!!
Concentrate more on Microsoft product. Good news
Windows phone is growing but very slow. Better concentrate on their own platform
I don't know where MS thought they could use these developers but I suspect this won't be the last time we see this story.
Microsoft needs to invest in bringing Universal Apps to Android. Investing in Cyanogen alone wont do much.
And what if Microsoft invested in Windows app development, exclusive apps and games for Windows portfolio, it would mean something. I know we have Halo Spartan Assault but its not enough to bring a lot of users to Windows phone, imagine some dozens of games like those and same fluidness in OS, MS bought Minecraft for 2.5 billion $. imagine all those money given to fully talented and committed developers it would make a difference, the reasons stopping me from leaving Windows phone were Cortana and the OS fluidness itself one thing gone, I expect the rest should rest. jst saying.
Microsoft should have bought Cyanogen outright, at any price. 5bn, 10bn if need be.
Then the world would have an absurdly popular and free alternative Android system better than Google Android, clear of Google's services and stuffed full of Microsoft software and services and delivered via a Microsoft store undercutting Play with a full back catalogue of Android apps (excluding Google's)
Not pretty but tactically a stunning move:
1. reducing Google market share and lock in
2. driving significant numbers to MS ecosystem of software and services
3. holing Google Play store and Android variant under the water line
Sometimes to win you have to play dirty with your competitors. This was a major missed opportunity.
Leverage.
I don't believe that there was ever any truth to the rumors regarding Microsoft and Cyanogen.
Stop the google infestation and their stupid advertisement popping up on screen all the time .
This really is too bad. This would have been a nice little tax write-off for Microsoft plus who knows, we may have seen a nice little Cyogen mod of Windows 10 for Phones. Ah well, perchance to dream. At the very least, I'm sure they're working out a Samsung-like deal to have a few of their services end up on a few Cyogen-powered devices.

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