Scion of Murgen (He/Him)
I think he hoped to leverage the Blumes into a cheaper price, and didn't realize how risky his position actually was.Also, Gygax had every opportunity to buy the stocks that would have left him in control, and he had the money, too. He just waffled so long that Williams was able to buy them instead. Gygax really had no one to blame for what happened other than himself, but he was mostly off in California at the time and his head was not really in the game, to say the least.
I'm not sure his head ever really was in the management game. Pretty much all his decision making in the late 70s to early 80s looked like he felt responsible for the company and wanted to be the Glorious and Honored Founder, but didn't enjoy or have much talent for actually managing, and ducked those responsibilities/shunted them off to the Blumes about as much as he could.