Friday, October 3, 2014

Cyanogen turns down Google buyout offer, seeks Series C funding instead

Very few people could say no to Google’s big bucks, but rumor is Cyanogen executives did exactly that in a bid to keep their fledgling company’s unique identity and independence intact.



Until roughly a year back, CyanogenMod project founder Steve Kondik managed to preserve the open source operating system’s air of indie audacity, despite the Android-based ROM shooting to unexpected heights of mainstream popularity.

Sure, most typical Android users are still unaware of the levels and levels of customization CM can bring to the table. And they probably couldn’t care less about the whole Android skinning via unofficial ROMs business.

But the community of amateur hackers and casual tinkerers is much larger than Google would like to believe, and it’s growing as we speak. Naturally, as soon as Cyanogen became a commercial enterprise and started delivering wholly stable, corporate S versions of the OS to device manufacturers, the search giant acknowledged the crescent danger and made Kondik & co. an offer they couldn’t refuse.

Only they did, reportedly trusting the potential of the business and assessing CM’s value at roughly $1 billion. Of course, since they don’t actually generate a lot of revenue (read no revenue at all), the investment possibilities are fairly limited.



Ergo, Cyanogen is in discussions with unnamed “late-stage investors” and “major tech firms” for a round C of financing, following in the heels of last year’s $22 million fundraiser.

What do they plan to do with the money they’ll receive, if the interest is real? Among others, load a CM firmware on an upcoming Micromax smartphone. Way to hit Google Senior VP Sundar Pichai where it hurts the most, huh?

For those of you unfamiliar with the Asian mobile décor, Micromax is one of the big players of the Indian market, being basically tied with Samsung in the lead in domestic sales numbers. They’re also among the pioneers of the Android One project, so naturally, whatever they have planned alongside CM will go up against the stock Android-running members of the One family.

Complicated business, and all in all, Cyanogen is playing a dangerous game defying Google like that. If the speculation is accurate, and not just a ploy from CM to artificially increase the market price of a company that really isn’t making any money at the moment. At all.

Sources: Android Police , The Information



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