This is sadly a very common business strategy. Partner with a smaller company, get a bunch of work out of them, stop paying them knowing they're not wealthy enough to sue you, wait for them to be on the edge and then either acquire them for peanuts or just grab up their people and assets. I read a book a few years ago on the history of Commodore and this is pretty much how they built themselves up to the powerhouse they were in the 80s. Bethesda and EA are believed to have acquired a few of their studios this way too.
Big business and ethics are frequently like oil and water. And well, look up Strauss Zelnick, the guy who runs Take-Two now. His ruthlessness is legendary.