After nearly six months of efforts to pursue a transaction with no meaningful progress, we are withdrawing our proposal to acquire SanDisk. I am disappointed that we have been unable to reach an agreement on our proposal. I continue to believe that a combination of our two companies would have created a superior global brand, an unparalleled technology platform and the scale and resources to drive convergence in the marketplace.
We already took our shot at what was behind Samsung's so-crazy-it-makes-sense attempt to acquire SanDisk. Samsung, we said, has supplied the memory chips for Apple's iPhone since its launch last year. That's why Samsung needs to bulk up to contend with the might of Apple, one of the largest buyers of flash memory. Now that Samsung has dropped its $5.8 billion bid, does that mean we were wrong? Well, yes. Big corporations act like teenagers. These crazy kids will eventually make up, or find other partners. Here's the official breakup note from Samsung CEO Yoon Woo Lee: