I have no inside information what so ever, but I am still today using a digital camera with a Kodak sensor almost daily (a M9). I am still baffled, how a company of this size and revenue can fall apart like this - probably only paralleled by the demise of Nokia. Till the early 2000s, Kodak was not only a leader in film but also in digital photography. Their CCD sensors are still made today, their sensor division now owned by OnSemi.

All the first Nikon and Canon DSLRs had Kodak technology in them. Not sure how things happened in detail, but eventually Nikon and Canon had their own digital technology, mostly based on CMOS sensors. Kodak had one more CMOS camera of their own - the 14n based on a Nikon body. But while being the highest resolution body at that time, it got mixed reviews. Still at that time Kodak probably would have had enough cash to buy Nikon.

Yet they withdrew from professional digital cameras, the last life sign was providing sensors for the Leica M9 and S. And with no other leg to stand on, the company mostly vanished with the collapse of the film market.

Ironically, the price you pay per roll of film is on an all-time high, so in theory, the business of making film should be more profitable than it was, but the scale just is not there any more.