The "out of town coup" is a very typical Silicon Valley dirty-trick.
It was done (successfully) at my startup. It was after a merger, in 1996, when my company was bought by another company (a competitor), but as part of the deal, our CEO was placed in-charge. It had been a heavily leveraged deal.
It's been long enough, and this company doesn't exist anymore, so I'll name names.
Seagate Software. (They were later bought by Veritas, later bought by Symantec).
(we had gotten a lot of options - and the buy-out made even junior-level employees rather wealthy) - About a year after. . . some managers from the other company arranged a deal with an Asian distributor, and sent our CEO to China for a 2 week trip. Their product had had a very bad quarter, and they had missed a delivery for a major upgrade. (we later found out that this was intentional; their project manager took ownership of a couple of major bugs, and sat on them, on purpose). While our CEO was gone to China, they got the board to vote on his ouster. (it turned out to be a completely bogus trip - there was no deal, just a guy at the distributor willing to waste our CEO's time and keep him busy and out of contact for 2 weeks). Fuckers showed up at our office on Monday morning, handing us all big fat layoff packages, (some of us got retention and relocation deals), and they basically pushed a plan to close our branch office.
By the time the CEO and his allies knew what the fuck was going on, all of the major talent at our branch fucked-off, took their severance, stock deals, and got other jobs.
The sad thing was, it was our customer base that really got fucked over. People paid REAL money for our software back then.
Later - I heard that this was a pretty common trick in takeovers and leveraged buyouts. The sleazebags who ran the other company weren't even technical people - they were financiers. They made a fuckton of money, the technology all got shut down, the engineers went elsewhere. They took that money and used it for other IPO buyouts later.
By the time 4 or 6 years passed, we're into 2000, 2001, 2002, and that's where you started to see a real squeeze in our industry, and old-school players like Sun, DEC, and HP were feeling the heat from these shenanigans. A whole fuckton of people who used to innovate and work with technology for a living, pretty
much either retired, or found something else to do for a living. They called it an "industry consolidation". We also have not really seen much in the way of innovation since then, either. Unless you count iPads and "cloud computing".
Dirty fuckers who had nothing at all to do with technology.
Yeah, we needed money to do all this stuff. But the guys who make the money available, are basically the devil.