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Character.AI files for Chapter 11 bankruptcy, agrees to sell some IP to Disney for $20 million
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According to Reuters, Character.AI has filed for Chapter 11 bankruptcy protection in the United States and agreed to sell some intellectual property to Walt Disney for $20 million. Disney has been designated as the stalking horse bidder, with its offer serving as the minimum bid. The asset sale is expected to close in late November or early December 2026, and the platform will continue operating during the sale process. If no buyer willing to operate the platform is found, the company will gradually wind down its related business.
Source report
According to Reuters, Character.AI has filed for Chapter 11 bankruptcy protection in the United States and has agreed to sell certain intellectual property to The Walt Disney Company for $20 million.
Key Details
- Stalking-horse bidder: Disney has been designated as the lead bidder, with its offer serving as the floor price for the bidding process.
- Timeline: The asset sale is expected to be completed in late November or early December 2026.
- Continued operations: The platform will continue to operate during the sale process.
- Potential wind-down: If no buyer willing to operate the platform is found, the company will gradually wind down the related business.
Source
aihotNeutral / independent
Part of this Story
Character.AI Files Chapter 11, Disney Named $20 Million Opening Bidder