Disney has offered $20 million for selected Character.AI assets as the startup files for Chapter 11 protection in Delaware. The platform will keep running while it seeks a sale.
01Summary
- 01Character.AI filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware.
- 02The company said it hopes to complete a value-maximising sale of all or substantially all of its assets.
- 03Disney agreed before the filing to pay $20 million for a non-exclusive perpetual licence of select intellectual property and company claims.
- 04Disney is acting as the stalking-horse bidder, and the offer can still be topped by higher or better bids.
- 05Character.AI said it aims to conclude the sale process by late November or early December.
02Why it matters
The deal shows how a major media company is trying to gain a foothold in AI while one of the better-known consumer AI startups restructures under court protection. It may affect how Character.AI’s technology and intellectual property are sold and used.
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