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Microsoft said to invest in Android maker Cyanogen

Scott M. Fulton III | Jan. 30, 2015
Microsoft has made a $70 million equity investment in Cyanogen, producer of an alternative distribution of Android, according to a Wall Street Journal article published Thursday.

Hilwa doesn't think Microsoft should be interested in acquiring the CyanogenMod or Cyanogen OS platform for itself. "If developers have to do extra work for another platform, including a significant amount of testing, they still would tend to hesitate to support low market-share platforms. It does, however, reflect a newer thinking at Microsoft, in terms of letting the different products go after their markets more independently," said Hilwa.

Ross Rubin, a Reticle Research analyst, notes that if Microsoft were truly interested in becoming an Android vendor in its own right, it would not have discontinued Nokia's X series smartphones shortly after it acquired Nokia.

"But as [Microsoft] gets more aggressive about putting its services on other platforms, it could see Cyanogen as a means of distribution for services such as Office 365, Outlook, and Skype," said Rubin.

 

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