Character.AI files for Chapter 11 with Disney's $20M license bid in place
The chatbot platform will stay online during a court-supervised sale, but Disney's opening offer covers selected rights and transition services, not the whole business. Character.AI says it could shut down if no bid supports continued operations.
By Ryan Merket · Published
Primary source: Business Insider
Why it matters
The filing puts a large user-created character platform into a sale process where the technology, talent, intellectual property and consumer service may not end up with the same owner. Users can export their data or delete their accounts during the process, but the platform's continued operation depends on a bid that can support it.
Character.AI filed for Chapter 11 bankruptcy in Delaware on October 12th and is seeking a court-supervised sale. Disney Worldwide Services, an affiliate of The Walt Disney Company, has agreed to make a $20 million opening bid for a perpetual, non-exclusive license to selected intellectual property and claims.…