Level 5 still makes a lot of money on DS, a lot more than they make on any other platform currently. I don't think they'd be willing to just let that fade. Not to mention making a successful game on a platform usually doesn't mean you are bought out.
Usually its the exact opposite. When a company is vulnerable it merges or is bought out which is why the rumors of Ninty buying Factor 5 actually works. Unless Level 5 is in trouble, which I doubt they are, they probably would like to stay independent.








