“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.”
So, Microsoft won’t be pursuing that angle any more. But Cyanogen is raising the funds it needs and still intends to disrupt Android OS with its fork.
Bloomberg did also say:
While Microsoft and Cyanogen failed to strike an investment deal, talks between the two illustrate how Microsoft is trying to get its applications and services on rival operating systems, a key goal embraced by Chief Executive Officer Satya Nadella. Microsoft has in the past complained that Google Inc., which manages Android, has blocked its programs from the operating system.
Apparently, what Microsoft had in mind was to have its apps and services on to Cyanogen OS, pretty much the way it has struck a deal to have its apps pre-installed on Samsung phones.
This didn’t work out for Microsoft, but its clear that universal access to their software is their core proposition right now. They certainly are exploring every means possible to get their apps into everyone’s hands.