Character.AI files for Chapter 11 with a $20 million Disney bid
The platform stays up. Disney's $20 million bid is for a non-exclusive license and some claims, and other buyers can offer more.
By The desk, News · · 1 min read
Tags: character-ai · disney
Character Technologies, the company behind Character.AI, filed a voluntary Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware. It said the filing is meant to run a sale of all or substantially all of its assets, and that the platform will keep operating during that sale.
Before the filing, the company signed an agreement with Disney Worldwide Services. Disney is the stalking-horse bidder: the opening bid others have to beat. The bid is $20 million for a non-exclusive perpetual license to some of the company's intellectual property and for some of its claims, plus transition help from former employees Disney has hired. The company said a sale could close in late November or early December 2026. A higher bid can still win.
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