The company was acquired and they managed to convince the powers that be (they always had more traction with them because of history) that they were worth keeping on and they could handle the workload.
So team B was laid off after the acquisition.
Last I heard team A was scrambling for warm bodies to keep up with the workload and didn't want to be seen as not being able to do the work of A + B so they were pretty much working to the bone. Also some of their management were cut as they had grown their management team under the theory that "well we've got to keep an eye on team A".
Granted there were good folks on team A who had nothing to do with the politics that I'd be happy to work with in a heartbeat, but after the layoff I decided to change professions and so I've largely lost contact with them.
I did actually apply to join team A again after some good folks asked me to apply and I did so out of curiosity, but having actually done the job for years apparently wasn't enough to make it through their resume filter and I was rejected and didn't bother to follow up ;)