If they are in that position another company would be making a good buy to purchase them. I mean think about it, the 520 is going to be a great chip or M$ would not be using the similar tehc in the 360, nor would Big N be using that tech in their new console. So its about a given that their next pc part is going to be pretty sweet and they definatly have alot already setup and planned for the future. The fact that they have Embedded Dram now on a chip running is a huge jump for when they decide to bring it to the PC market. The troubles they are having I would say have more to do with their chosen Fab company than anything else. Everyone had to learn the hardway when bringing out a whole new design with that company.
As far as Ati being bought out its definatly possible, I mean think about how many strong points Ati has going for them. They are going to be on top again, as the video card market is a leap frog market. And they will make lots of money in the next few years. M$ and Nintendo have guranteed this and add in the extra market share they will be picking up with their PC chipset, their next video card releases, I mean heck they only really have one way to go with all they have in the pot and thats up. Unless of course the 520 turned out to be a joke, which isnt going to happen, so I would say any company would consider purchasing a company that is profitable and has strong future growth potential. Whos going to do it though is the question and why would they? You could argue for consolidation but that idea has seemed to of staled somewhat in the pc hardware market so I dont think its going to happen.