Oct 18, 2026 — Court filing (Bloomberg) details Disney’s stalking-horse Chapter 11 bid for Character.AI: Disney agreed to offer jobs to at least 60 employees (~$60M estimated annual compensation); vast majority accepted. Bid remains open to higher offers.
Character.AI filed voluntary Chapter 11 Oct 12–13, 2026 to sell assets; Disney offers $20M for non-exclusive perpetual license to selected IP plus transition services. Platform may wind down if sale does not provide operating continuity.
Company cited high costs and litigation/regulatory liabilities including teen-safety lawsuits and state investigations.