Microsoft (NASDAQ:MSFT) is reportedly planning to invest over $70 million in CyanogenMod Inc. in a bid to compete with Google Android OS. The company’s investment will be in the form of equity funding and will become a minority investor in the CyanogenMod Inc. which is worth more than a hundred million.
CyanogenMod ROM is an alternative version of Google’s Android OS and mainly helps users for upgrading to the latest OS after being denied the version. The company consists of open source developers who include several tweaks and features though the only back draw is third-party applications installed by carriers. Sources familiar with the plans revealed the ROM maker’s worth, after it became a corporate company.
An interesting fact is that Microsoft has its own Windows operating system for smartphones and generates revenue from licensing fees from open source Android OS. The company is set to release the latest Windows 10 OS for smartphones soon and things are not smooth between the two companies.
Google has not made available YouTube in the Windows Store and other applications. Microsoft hopes that supporting CynogenMod to develop a anti-Google OS would bring down the company’s market share, which is leading when compared to Apple iOS and Windows platforms.
Kirt McMaster, chief executive CyanogenMod is hopeful that the company will take away Android from Google as there are more than 50 million CyanogenMod users around the world. The ROM maker is also finding an increasing number of takers due to slower official versions and has the chance to overtake Microsoft in the mobile OS market share.
Microsoft declined to comment on the speculated investment, though the move could greatly improve the services offered by CyanogenMod. However, it remains to be seen if CyanogenMod can live up to its expectations and does not evoke criticisms by developing a less useful anti-Google Android OS.[ Via ]