According to CustomPC, AMD will be axing the ATi name. Baker stressed that, contrary to what's been reported in the press elsewhere, the acquisition will be a takeover rather than a merger, which means that AMD is going to be wearing the trousers in its relationship. Baker said that 'the company is being bought, so it's fairly standard that the name should go, as it's becoming a part of AMD.' The question now is if the Radeon name will stay or not. My guess is it will.
I think so too, it's a recognized name and changing it isn't going to help business, just confuse customers more so.
As per my point of view, they will not change the name .But I think it also depends on how they will advertise their product.
Well, I found this link over @ ArsTechnica. They spoke with AMD, and the ATi and Radeon brandings will stay. From what they deduced, CustomPC misunderstood a few things and concluded that the ATi name was getting the axe.