Absolutely correct.

First duty of any Board of Directors is to the shareholders.

If the BoD estimate that:

Selling out in a merger
OR
Buying back shares and giving shareholders capital plus equity back is better than continuing

Then there is a fiscal responsibility to say :

' Here. Take your original money plus more that we made for you. We have done all we can. Take your increased money and re-invest it.'

Mercantillist, Adventurist Capitalism 101 since the first Amsterdam Bourse.

That is how it started off. That is how it works.

And once the BoD have a majority share in control, then they can:

Buy up others.
Award remuneration packages that reflect 'the GMR for execs...'
Close it down
Whatever.

This is just the way it works since the first, returning spice ships were sighted off the Hook van Holland.