I've been expecting an announcement like this since at least 2002. I was at a recruiting event at Sun back in late 2002 and it was pretty obvious to me then that they had lost their way. They had no killer products or even rumors of such, they'd gone through a number of rounds of "cost cutting" measures (read: layoffs) and they were focused on yesterday's technology or pie-in-the-sky ideas.
But, big things have a lot of momentum and can coast for a long time before reality hits. And, for some, reality will only hit when they feel the frigid waters of the north Atlantic.