Disney Readies $20 Million Bid for Character.ai Assets After Chatbot Company Files for Bankruptcy
The entertainment giant previously sent the AI platform a cease-and-desist letter over unauthorized character use and then hired its former CEO Karandeep Anand last month The post Disney Readies $20 Million Bid for Character.ai Assets After Chatbot Company Files for Bankruptcy appeared first on TheWrap .
Character.ai submitted for Chapter 11 bankruptcy on Monday in an attempt to "facilitate a value-maximizing sale" of its assets, with Disney preparing a $20 million bid for a "non-exclusive perpetual license" of certain intellectual property. This development occurs a year after Disney had sent the chatbot company a cease-and-desist letter in September 2025 due to unauthorized character use, and a month after hiring former CEO Karandeep Anand as CTO.
According to the new agreement, Disney Worldwide Services will act as the "stalking horse bidder" and temporarily retain Character.ai employees hired by Anand for transitional services. However, other companies retain the ability to submit higher bids leading up to the sale's completion, expected in late November or early December.
Character.ai CEO Colin Adams noted that the company has made significant strides in stabilizing its business amidst various legal, regulatory, and operational challenges, and the court-supervised sale process offers the best chance to maximize value for all stakeholders. Character.ai will continue operating as usual during this process, with minimal disruptions to service.
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