Samsung has said that SanDisk is now "not worth the money it was offering" and that SanDisk's refusal to entertain friendly discussions stymied hopes for a deal.

Early in September ChannelNews wass first to report that Samsung had offered for $26 a share to buy the struggling memory Company. SanDisk rejected the offer, saying Samsung was taking advantage of a market downturn to buy it on the cheap.

According to the Wall Street Journal, since then, global stock markets have continued to come under pressure. And SanDisk on Monday reported a wider-than-expected loss for the third quarter. Investors increasingly came to believe a deal wouldn't get done. SanDisk shares closed at $15.04, up 28 cents or 1.9%, in Nasdaq trading on Tuesday.

In a letter to SanDisk's top executives, Samsung Chief Executive Officer Lee Yoon-woo said SanDisk's third-quarter loss and the subsequent restructuring of its chipmaking deal with Toshiba "point to a considerable increase in your risk profile and a material deterioration in value."

"As a result of these developments, we are no longer interested in acquiring SanDisk at $26 a share," the letter from Samsung said.