Behind the stunning exit of Disney CEO Bob Chapek

Five months ago, Bob Chapek seemed firmly in control.

Walt Disney Co.'s board of directors in June extended Chapek's contract as chief executive of the legendary company for an additional three years, noting his leadership was key to "keeping Disney on the successful path it is on today."

But on Sunday, Disney's directors abruptly ditched Chapek, reinstalling his widely admired predecessor, Bob Iger, which elicited cheers from Wall Street and Disney's faithful.

What happened?

Interviews with nearly a dozen Disney insiders, analysts and people close to the board suggest that Chapek's problems had been mounting almost since the day he took Disney's reins in late February 2020.

Within weeks, the economic environment had profoundly shifted as COVID-19 pandemic health precautions closed businesses, including theme parks, cruise lines and movie theaters, that had long buttressed the Burbank company. He also tried to expand Disney's reach in streaming, a costly bet.