Both companies are so screwed right now. Their markets are being eroded by low-cost or free alternatives and the reasons for customers
to pay a premium for their name are dwindling. Both wanted to be the next
Microsoft and dominate their market. It's a close race to the
bottom, but I think Red Hat will fold first. Sun's still got a damn lot of
cash in the bank and barring a massive coke-binder from the CEO, Red Hat will
continue to eat through their smaller pile of cash faster while more customers
migrate to Suse (for the people who like to pay money) and Debian/Other linux.