Yes that is what you do. If you come up with a great idea for a new fast food burrito restaurant (like Chipotle), you take customers away from McDonals and have them eat at your place. Then if you are successful enough, McDonalds comes and buys you.
If you have a fresh new idea about animation (pixar), you hope to take customers away from Disney animted films. If you are take off, Disney comes and buys you and you end up with 3 billion dollars in Disney stock.
That's what you do, you sell out.
What if Nirvana didn't sell out and go with Geffen Records. They would have remained some obscure cultish grunge band like Tad or Mudhoney. Instead they sold out, became cultural icons and now Courntey Love and Francis Bean are work a quarter billion dollars, the drummer guy is also worth 200,000,000 and the faceless bass player who never did anything since Nirvana is worth 30,000,000 (figures according to celebritynetworth.com).