The idea of Redmond investing in Android mod-maker Cyanogen may be too good to be true. Citing unnamed sources, Bloomberg reports that Microsoft is not, in fact, a part of Cyanogen's upcoming funding round, which is now said to be in the ballpark of $110 million. Nonetheless, Microsoft may ultimately end up partnering with Cyanogen in the form of a deal that gets Microsoft's apps into future Cyanogen software builds, Bloomberg says.

But there could still be a side deal

Back in January, The Wall Street Journal said Microsoft was eyeing a minority stake as part of an upcoming funding round. At the time, that funding was said to be $70 million, making this newer figure significantly higher. Microsoft's role would have been notable given that it makes a nice chunk of change from patent royalties relating to Android, and has considerably opened up its software to other platforms. Even so, an investment in a rival platform could be a bad sign for the future Windows on phones as Windows 10 nears.

Neither company is commenting on the round, which has not yet been announced.

Cyanogen makes the popular Cyanogenmod Android Firmware, and gained fame not only for bringing new versions of Android to devices that were long since abandoned by carriers and manufacturers, but also threatening to "take Android away from Google." As a company, its aim is to get its software on new phones made by others, while brokering deals to bake third-party apps and services into Cyanogen OS, something it hopes will ultimately make Cyanogen devices more attractive.